Foil NOC strike

The strike by Nepal Oil Corporation (NOC) staff is perhaps one of the shameless agitations burdened upon Nepali consumers in recent years. Their demand for bonus from the profit that the corporation made in the previous fiscal year, despite corporation’s negative net worth, huge accumulated loss and mammoth outstanding loans, straightforwardly challenges prudent financial norms. Their claim to bonus citing Bonus Act is also unjustifiable as the profit was made solely by making the consumers pay prices equivalent to average crude price of US$75 even when the international price has dropped to US$40. Furthermore, the corporation is still forcing the consumers to pay more to recover losses it incurred during the high crude price era. Clearly, the corporation management must use the profit to pay the outstanding debt, instead of distributing it among staff.



NOC managing director Digambar Jha who has appeared generous to his staff by provisioning bonus returns must understand that his move and his staffers’ strike could impart negative message to consumers, who after decades long resistance have finally come to the terms that they need to pay what it costs internationally to buy fuel and pay for the loss as well. By demanding bonus, the corporation has forced consumers to rethink their behavior. If consumers feel that they are being victimized for readily paying more for the fuel than what the corporation paid, it will reverse all the hard work done in attaining this change in mindset. This could prove fatal for the corporation and nation as a whole. Hence, the government must act promptly and force the NOC staff to withdraw their strike immediately. If not, then the government should enforce the Essential Service Act, if required, to do justice to consumers.



Similarly, the demand of two agitating NOC trade unions to withdraw actions taken against Amlekhgunj depot staff, who inflicted a loss of around Rs 30 million in the name of technical loss, is shameless. Their demand to the management to raise the acceptable loss limits for depots, which will widen scope for leakage, again is ill-intended. These demands clearly highlight how corrupt, anti-reformist tendencies rule NOC. And unfortunate part is; the management entrusted to correct this situation and serve the people’s and country’s interest stands in favor of the staff.



The latest stalemate has demonstrated how direly the petroleum sector reform is needed in the country. Clearly, if there were multiple oil importers and marketers, consumers would easily have escaped the brunt of wrong tendencies in NOC. Also, no staff, including the top NOC management, would have dared to provision and demand bonus when the organization’s finances are seriously in red. Instead of demanding space for more leakages, it would have been compelled to take the prudent course. With competition, NOC would have been worried more about serving consumers than pleasing staff. Hence, we urge the government to instantly put the derailed petroleum sector reform on track.

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