Govt may scrap dual pricing on diesel
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KATHMANDU, DEC 22 -
The government is all set to end dual prices recently introduced by the Nepal Oil Corporation (NOC) on diesel and kerosene. The move follows nationwide protests against the price hike by the business community.
About one-and-a-half weeks ago, the NOC had hiked the price meant for industries, hotels and diplomatic missions, hospitals and development projects, among others, that purchase 3,000 litres at a time in order to cut down it’s losses.
Minister for Commerce and Supplies Lekh Raj Bhatta said the government is making preparations to hike the prices of all petroleum products, while the dual pricing system will also be ended. “Considering the multiple effects of the dual pricing in industrial production and supplies chain, we have been asking the government to withdraw the decision,” Bhatta said. He said his ministry has already asked the Prime Minister’s Office and the Ministry of Finance (MoF) to make necessary arrangements to consider the plea.
Bhatta, however, remained tightlipped on how much hike will be made. “The new set of prices of all petroleum products will be introduced in such a way that half the loss of the NOC will be borne by the government and the other half recovered from the consumers’,” Bhatta said.
Secretary at the MoCI Purushottam Ojha said the ministry is doing homework to slash the double pricing and implement the new price set. “Once the government approves a proposal forwarded by the ministry, we will promptly implement the new provision,” Ojha said.
The Confederation of Nepalese Industries (CNI) on Wednesday met Bhatta and senior ministry officials to discuss their concerns about the dual pricing system. “At a time when the government is struggling to supply adequate power for industries, it is imposing extra price in diesel by introducing the dual pricing mechanism,” Binod Chaudhary told a programme at the MoCS.
Posted on: 2011-12-22 08:44
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