Give NOC Rs 9 billion to ensure fuel supplies till May 27, says MoCS
KATHMANDU, FEB 24 -
The Ministry of Commerce and Supplies (MoCS) is planning to ask the government for another loan of Rs 9 billion for Nepal Oil Corporation (NOC) so that it can ensure regular fuel supplies till May 27, 2012, the deadline for completing the constitution.
“As the political parties are concentrating their efforts on wrapping up the peace process and the constitution, it is
necessary to keep fuel supplies smooth until the constitution drafting deadline,” said Lekh Raj Bhatta, Minister for Commerce and Supplies. “We are planning to request the government to provide another Rs 9 billion in credit.”
With NOC repeatedly asking its line ministry the MoCS to either allow a price revision in line with the international market or provide cash to tide it over until the world price recovers, the ministry has opted for the second option fearing a political backlash.
In the last two months, the government has provided Rs 4.75 billion in loans to the NOC. The latest one was on Feb 2 when the government approved Rs 2 billion to the state-owned monopoly. Currently, its monthly projected losses stand at Rs 1.18 billion.
Meanwhile, Bhatta charged that private oil dealers and LPG traders were creating an artificial fuel shortage by hoarding and black marketing petroleum products. “Although NOC has improved oil imports, the market has not recovered,” Bhatta said. On Wednesday, Bhatta led a raid on Gaurishankar Gas Industry, the producer of Himal Gas, at Sanga, Kavre. He warned that the government would not spare traders creating an artificial shortage or black marketers. “I know where black marketing is being carried out,” said Bhatta said. “I will not leave anyone if they do not stop it and resume regular supply,” he warned.
Similarly, the government is planning to issue product delivery orders to bottling plants as per their refilling capacity, while the ministry is planning to issue two types of cards to general and commercial customers of LPG.
On Jan 19, NOC had jacked up fuel prices with the blessing of the government. Subsequently, on Jan 26, the government partially rolled back prices of petroleum products following street protests.
Source: Kantipur
