Essar Oil to break IOC supply monopoly in Nepal

India’s Essar Oil is negotiating with the Nepal government to supply petroleum products in the country. At present, Indian Oil Corp. (IOC) has monopoly over supplies of petroleum products to Nepal. The demand for petrol is about 720,000 metric tons per year (MTPY) and for diesel fuel about 140,000 MTPY in Nepal. Essar Oil operates a 280,000 barrel per day (bpd) refinery at Vadinar in Gujarat. The company is expanding the capacity to 320,000 bpd by 2010 and further to 700,000 MTPY by 2011. (November 24, 2009)