Following denial of funds by the Ministry of Finance, the debt-ridden, state-owned petroleum import monopolist has pushed for a rise in prices in order to finance regular imports.
A senior Nepal Oil Corporation (NOC) official said the corporation has mooted a gradual price hike and recommended to the supplies ministry to bring the price of petrol at par with import prices and substantially raise the price of cooking gas.
"As a rise in prices will impact consumers greatly given the significant jump in demand for diesel and kerosene in the festive season, we have proposed a marginal price rise," the official informed.
Sources disclosed that the NOC proposal includes rises in the prices of petrol by Rs 2 per liter, diesel and kerosene by at least Rs 1 per liter and cooking gas by at least Rs 100 per cylinder.
At present market prices NOC is incurring a loss of Rs 1.84 per liter in petrol, Rs 4.49 in diesel, Rs 2.73 in kerosene and Rs 292 per cylinder in cooking gas.
NOC managing director Digambar Jha said his major concern was the price of cooking gas as this single product has been generating over 60 percent of the total loss for the corporation.
"The corporation's monthly loss at present stands at Rs 260 million, and of that, Rs 170 million emanates from gas," he said adding that he expects the commerce minister to decide on his proposal by the weekend.
NOC's proposal, which includes different options for the commerce minister, has also pushed for instantaneous segregation of the gas market through the introduction of new types of cylinders for commercial consumers such as hotels, restaurants and vehicles.
Jha said he has proposed introduction of 20 kg cylinders for commercial consumers. "The aim is to go for differential pricing in gas for household and commercial consumers within a few months," said Jha.
The proposal contradicts expert opinion that gas is consumed by well-to-do households and needs no state subsidy.
Jha said it would help NOC substantially bridge the loss for the time being. "Irrespective of whichever option the government decides on, NOC will
also need a fund support of at least Rs 550 million to meet this month's fund deficit," he said.
Jha elaborated that the corporation's petrol stock is just enough to meet two days' demand. Amid short supply of oil from India due to non payment of scheduled import bills, the corporation has been failing to distribute adequate fuel in the market. That has created a severe supply crisis.
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2 comments:
(1) Solving fuel problem is neither in hand of government nor NOC. It’s in hand of common people – you and me. We should make our mind for price increase. Everyone should be clear that they want fuel shortage or they accept price increase. Without price increase, there cannot be a permanent solution. I guess by now if a vote is called for price increase then majority of people will accept price increase. If still people are not ready we (you and me) should tell everyone around us why price increase is necessary. That’s how consciences can be built.
(2) Then it’s in hand of political parties to accept the price increase, they are testing patience of general people. we need a andolan to tell the political parties that we want an end to the fuel crises. we people should come out on street to convey that we want immediate end to this. it only need peaceful demonstration. but yes we can burn tyres. then i am sure the deaf politician will fell that we have had enough.
(3) People we should move ahead, if something costs RS. 100, we should be ready to pay for it or not use it. Every moment we waste time in QUE, or even thinking for fule as a problem we are wasting our productivity.
people like sankalpa are intellectuals who have taken Nepal to the present crises, we do not need problem creating intellectuals. i hope we had more idiots looking for resolving crises and not intellectuals creating crises.
If NOC has corruption, then fight the corruption but do not fight the present price hike. Lets make NOC accountable and transparent. If you know NOC has corruption expose it. Lets come to street to ask NOC to make its financial statement public. unavailability of fuel is suffering of poor nepali. The reach are able to arrange fuel even at time of scarcity.
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