Govt mulling fuel price hike: Supply Minister
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KATHMANDU , DEC 11 - Minister for Commerce and Supplies Lekhraj Bhatta has said that the government has been making preparations to hike the price of petroleum products.
Minister Bhatta said that the preparations to hike the price of petroleum products were underway in a bid to compensate a monthly loss of Rs 1.265 billion rupees incurred by the Nepal Oil Corporation (NOC).
“NOC cannot bear the loss,” Bhatta said, speaking at Reporters Club in the capital. “There is no alternative to price hike,” he added.
He opined that the government would provide certain grant to make up the monthly loss faced by the NOC while the rest would be met by hiking the fuel price. He clarified that the new price of petroleum products would be adjusted in line with the cost price for NOC.
“I would revise the fuel prices in view the prices cost prices and price in Indian market,” he said.
As per the current prices, the NOC is bearing a loss of Rs 18.91 per liter in diesel, Rs. 7.12 in Kerosene and Rs. 339.22 in a cylinder of cooking gas.
Minister Bhatta said that the government would provide an annual subsidy for eight cylinders of cooking gas for a family. However, consumers seeking more than eight cylinders in a year will have to pay the market price for the cylinder, he added.
On the occasion, he also informed that the ministry has been discussing with the Finance Ministry, Home Ministry, Ministry of Education, and Ministry of Local Development about the subsidy to be provided to the students and have sought Rs 350 million from the Ministry of Finance for the same.
Alleging that the coupon system in NOC only gave rise to corruption, Minister Bhatta said he decided to stop the system and warned of reimbursing the money from the concerned person if founding giving oil according to coupon system.
Posted on: 2011-12-11 05:38
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