Nepal Oil Corporation Tightens Rules for Petrol Pumps

Heavy Fines and Supply Suspension Introduced

Hamrakura
Published 2026 Jul 03 Friday

Kathmandu: The Nepal Oil Corporation (NOC) has amended its Petroleum Products Sellers' Regulations to tighten oversight of petrol pumps across the country. Under the revised rules, petrol pump operators who shut down operations without a valid reason or disrupt fuel supply may face fines ranging from Rs 300,000 to Rs 1 million, along with the suspension of petrol and diesel supplies for 5 to 15 days.

The new provisions aim to prevent artificial fuel shortages and ensure uninterrupted distribution of petroleum products, which are classified as essential services.

Fuel Supply Disruption Prompted the Amendment
The amendment follows a nationwide disruption in fuel supply after several petroleum dealers reportedly refused to collect fuel from NOC depots on Tuesday, anticipating a reduction in fuel prices. As a result, fuel shortages were reported across the country from Wednesday morning, causing inconvenience to consumers.

In response, Minister for Industry, Commerce and Supplies Gauri Kumari Yadav directed the corporation to introduce stronger legal measures against businesses found obstructing the supply of essential petroleum products.

New Penalty Structure
Acting on the minister's directive, the NOC Board of Directors amended Section 29G(1) of the Petroleum Products Sellers' Regulations, 2075, adding a provision that prohibits sellers from creating situations where fuel nozzles run dry or petroleum products become unavailable without justification.

The revised penalties are as follows:
-First offence: Fine of Rs 300,000 and suspension of fuel supply from NOC depots for 5 days.
-Second offence: Fine of Rs 600,000 and suspension of fuel supply for 10 days.
-Third offence: Fine of Rs 1 million and suspension of fuel supply for 15 days.

Strict Enforcement Ahead
With the amended regulation now in effect, the Nepal Oil Corporation has warned that any petrol pump found withholding fuel or closing operations without a legitimate reason will face strict legal action. The corporation says the new rules are intended to safeguard consumers and maintain a reliable supply of petroleum products throughout the country.



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