Leaders urge govt. not to hike petro price

Parliamentarians and the leaders of political parties have suggested to the government not to increase the price of petroleum products rather seek an alternative to make up the mounting losses of Nepal Oil Corporation.

Speaking at an interaction on "Present Situation of Supplies of Petro Products: Problems and Challenges," the leaders asked the government for restructuring and aggressive reforms of NOC, the state-owned petroleum products supply monopoly body, as well as adoption of effective measures to check leakage and irregularities.

Making a presentation, Purushottam Ojha, acting secretary at the MoICS said that NOC is facing an acute fund crunch, while it has been incurring loss every day for the last five years. “The accumulated loans to be repaid by the corporation have already crossed Rs 10.20 billion and its current monthly loss stands at Rs 190 million,” he informed.

Due to lack of adequate liquidity, NOC has not been able to ensure smooth and sufficient supply of petroleum products, Ojha said, adding that the projects of infrastructure development works such as construction of pipeline between Amlekhgunj and Raxaul, establishing LPG bottling plant and additional storage tank have yet to be materialised.

Presenting the details of stock of petroleum products with NOC, he said the current stock is at record level low that would only meet the demand for about 2-5 days. “A serious crisis is inevitable in near future, if proper action is not taken immediately,” Ojha said.

Commenting on the occasion, Rajendra Prasad Pandey, the CPN-UML lawmaker said that the issue of petroleum products is very sensitive. “If the prices are hiked without consulting all concerned stakeholders, the constituent assembly elections could be directly affected,” he added.

Another lawmaker Binay Dhoj Chand of Nepali Congress suggested that the government should seek alternatives to compensate the losses, while keeping the prices of petroleum products affordable and ensure smooth supply. He further said that NOC should take initiative to control adulteration and flow back situation along the Indo-Nepal border.

Meanwhile, Rajendra Mahato, minister for industry, commerce and supplies on the occasion assured that the government would not hike the prices of petroleum products without consensus of all parties.