Nepal Oil Corporation (NOC) is the monopoly state company that deals with petroleum products—diesel, petrol, liquefied petroleum gas (LPg), kerosene and aviation fuel. It has the sole rights to purchase, transport, store, and distribute petroleum products. It purchases petroleum products from India, fixes prices with government consent and sells and distributes petroleum through private and public sector retailers and dealers. It is also the agency that can license petrol and diesel retailers.

In spring 2010, Nepal’s Inland Revenue Department (IRD) seized fake Value added Tax (VaT) invoices that were being sold at local stationeries. amid reports that companies used these invoices to evade taxes a story appeared on CNN online about a report prepared by the IRD on VaT evasion having gone missing, possibly because business elites had influenced the Finance Minister. The CNN piece reported that fake VaT invoices had been used to evade almost Rs. 20 billion in taxes, and also named some businesses that were allegedly involved in the scam.