IOC signs pact with Nepal oil body
Nepal Oil Corporation (NOC) and Indian Oil Corporation (IOC) inked an agreement on the supply of petroleum products for the next 5 years. As per the agreement, IOC has agreed to waive off 2.5% Price Adjustment Factor, which includes refinery and transportation charges among other technical losses under IOC’s existing price formula. As per NOC, this will assist Nepal to save 2 billion Nepali rupees yearly. IOC has also settled to add a fresh port in Mumbai to allow Nepal Oil Corporation easily distribute petroleum products in mid- western and far western regions.
At present fuel has been supplied by IOC to Nepal via Haldia port in West Bengal. They also agreed to forward the process to enhance the supply of cooking gas to Nepal from other Indian refineries, which presently is supplied via Haldia and Mathura refineries.