NOC plans refund of fuel subsidy through banks

KATHMANDU, NOV 05: 

Government is preparing to provide subsidy refund of Liquefied Petroleum Gas (LPG) and kerosene through banks. According to Nepal Oil Corporation (NOC), 

a study to select banks with branches in various parts of country, is ongoing. 

The Office of the Prime Minister had formally endorsed to provide subsidy in September. The government has decided to provide a subsidy of Rs 250 on a cylinder of cooking gas, and a subsidy of Rs 10 on a litre of kerosene to students. 

Similarly, it is also planning to provide subsidy to general consumers after the introduction of blue-colour cylinders for industrial purpose. NOC has been distributing consumer cards for the last couple of months to execute the plan. 

NOC has been holding discussions with Rastriya Banijya Bank, Agricultural Development Bank, Nepal Investment Bank, Nepal Bank Limited and a few others, according to a source at the corporation.

A student will be allowed a cylinder of cooking gas every three months and 10 litres of kerosene a month at the subsidised rate. 

Similarly, the Ministry of Commerce and Supplies has planned to provide a cylinder of cooking gas to each family at the subsidised rate after the distribution of the consumer cards is completed. 

Directly distributing money or subsidy when purchasing LPG or kerosene could bring forth malpractices, said NOC spokesperson Mukunda Prasad Dhungel, adding that the banking channel is a safe and reliable method to refund the subsidy. 

Earlier, government had planned to refund the subsidy to students directly through concerned educational institutions and universities. Providing refund directly through banks will help control fake claims and misuse by traders, NOC said. 

The government’s scheme to provide subsidy in kerosene some years back had been a failure after traders became involved in malpractices, said consumer rights activist Prem Lal Maharjan, adding that the government should learn from the past irregularities of the kerosene subsidy programme. 

Maharjan also said the refund process should be easy and simple, and that consumers should not face bureaucratic hurdles at banks.

Source: THT