Officiating director of Nepal Oil Corporation (NOC) Dipak Baral, who recently returned home after holding series of discussion on technical aspects of petroleum trade with officials of China National Petroleum Corporation (CNPC), the parent company of PetroChina, said that Chinese petrol and diesel will be expensive compared to Indian petrol and diesel if local taxes are not waive off by the northern neighbor.
Speaking at a meeting of Industry Commerce and Consumer Welfare Committee of the parliament on Sunday, Baral said the Chinese petroleum firm has been maintaining that taxation issues have to be finalized by the central government.
Baral, however, said NOC can supply petrol and diesel at Rs 88 per liter and Rs 84 per liter, respectively, to Kerung if China waives off the taxes.
“Customs duty and road maintenance tax, among others, make Chinese petrol and diesel expensive.”
A two-member team of NOC, including Baral, had left for China last week, to finalize technical issues related like rates and taxes with CNPC. However, the team couldn't sort these issues out as CNPC sought proposed holding government-to-government talks to resolve the issues.
Petrol and diesel imported from Indian costs Rs 104 per liter and Rs 82 per liter, respectively. India has been supplying petroleum products to Nepal without imposing local taxes.
Nepal had signed agreement with China to import one-third of its total demand products from China after IOC disrupted supply of petroleum products to Nepal.
Baral also said that CNPC has refused to supply petroleum products to Nepal via Kerung, stating that Chinese transporters were reluctant to use the route citing topographical risks.
Meanwhile, the parliamentary panel has directed the government to accelerate the process of importing petroleum products as soon as possible. The committee also asked the government to initiate diplomatic talks with China to settle taxation and pricing issues.
Urging the government to open Kodari and other border crossings with China, the committee asked the government and NOC to systematize fuel distribution system and assure that people queuing at fuel stations get fuel as per the quota.
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