Petroleum and Gas Transaction Orders 2013: Govt assures to address petro dealers genuine demands

KATHMANDU, APR 04 -

The Ministry of Commerce and Supplies has asked the agitating petroleum dealers to pinpoint the “clause” they are dissatisfied on the government issued Petroleum and Gas Transaction (regulatory) Orders 2013.

During the second round of meeting held on Wednesday, the ministry has asked the agitating groups to clearly point out the clauses in the orders they are dissatisfied with within four days.

Nepal Petroleum Dealers National Association, Nepal LPG Industry Association and Nepal Petroleum Transport Entrepreneurs have joined forces in protest of the new petroleum regulatory orders stating that the government orders will ruin their business. They have also threatened to halt supplies from April 7 if their demands are not addressed.

“As the agitating groups have demanded to scrap the orders, we have assured them that the orders will not be implemented until the government will find a way

out to their problems,” said Deepak Subedi, spokesperson at the ministry.

“We have also asked them to roll back their protest.” The agitating groups also held talks with the Commerce Minister Shankar Prasad Koirala. Subedi said that all problems will be resolved at the next round of meeting scheduled on Sunday.

According to him, the agitating groups said they were also not against the entry of private players in petroleum business but requested the government to be flexible on some of the issue.

In response, the ministry has asked them to underline the clauses they are dissatisfied with. “If their demand is genuine, the government can amend certain clauses in their favour,” Subedi said. “However, the government will not scrap the orders at any cost.”

The government had on Sunday invited petroleum entrepreneurs for dialogue after they threatened to halt supply. The associations have charged the government of not holding consultations with stakeholders concerned before introducing the orders.

They said that it was difficult for them to follow the “complex” provisions such as application fees. The new regulation has set the application fees for a refinery installation licence at Rs 500,000, while that for a petroleum business licence has been fixed at Rs 100,000.

Likewise, approval licence will cost Rs 5 million and it should be renewed every five years, which will cost Rs 500,000.

The minimum paid-up capital required for refining companies, petroleum trading firms, LPG importing firms and LPG bottling plants have been set at Rs 20 billion, Rs 10 billion, Rs 5 billion and Rs 50 million, respectively.

As per the orders, private companies dealing in petrol, diesel and kerosene should install a depot with an installing capacity of 20,000 kl, while LPG bottling plants should have a stock capacity of 500 tonnes.

On March 13, the government published the orders in the Nepal Gazette allowing investment of private in petroleum business. The orders have ended the 40-year monopoly of the Nepal Oil Corporation (NOC).

Source: The Kathmandu Post