Bhatta said this while talking to a delegation of industrialists from Confederation of Nepalese Industries (CNI). The delegation led by CNI President Binod Chaudhary had met with the minister and interacted with the MoCS officials, demanding that the government withdraw its decision that compelled industries and hotels to buy fuel at break-even rates.[break]
“Entrepreneurs in Nepal are already suffering from hefty bank rates, transporters syndicate and other factors that have rendered them uncompetitive. Rise in fuel rates has made things difficult for them,” said Chaudhary. He even requested Minister Bhatta to instantly scrap the dual pricing.
Bhatta responded to CNI´s request positively, but said withdrawal of dual pricing will compel the government to raise prices.
The government had given nod to Nepal Oil Corporation (NOC) to enforce dual rates, which left diesel price for transporters unchanged, but made it dearer to industries by about 25 percent, mainly to cut oil loss and manage import.
Going by the latest supply rates and domestic prices, NOC said it was presently suffering a loss of Rs 1.25 billion in the month of December. As a result, it has been failing to import adequate fuel, a situation which has spurred shortage of diesel in the market.
“The loss on diesel alone stands at Rs 19 per liter. Loss on kerosene is Rs 7.12 per liter. If consumers like you are not ready to pay how much NOC pays for the diesel, how do you think NOC will continue import enough fuel and manage supplies?” Bhatta questioned. He even chided the business community for not accepting the fuel price hike that has become a global phenomenon.
CNI office-bearers, however, said they will pay the price only if government ended anomalies at the state-owned petroleum monopolist, which was adding to its cost. “If the state feels it cannot supply us the fuel, we are ready to fulfill our requirements by importing from India,” said Chaudhary.
The statement of Chaudhary, meanwhile, irked Bhatta. “If the business community wants I will allow you to import fuel to fulfill your requirement. But are you really eager to do so, especially as the prices in India is expensive than in Nepal?” questioned Bhatta.
None of the delegate members expressed interest to import the fuel though.
The CNI delegation also pushed the government to open petroleum imports and invite the private sector into the business. Minister Bhatta said the government was always ready to do so.
“However, we have not yet managed to garner the political consensus to this connection, particularly as political parties maintain double-standard on the issue,” said Bhatta.
Related story
Pakistan's new govt decides not to roll back fuel, power subsid...
