Entrepreneurs not to buy diesel unless govt withdraws dual-pricing

BIRATNAGAR, Dec 12: Protesting the government decision to the dual-pricing in diesel and kerosene, business entrepreneurs in Eastern Nepal have decided not to buy diesel at the increased price.



A joint meeting of Morang Trade Association and Morang Industry Association held on Monday took the decision stating that the hike in diesel price by Rs 19 per liter to Rs 95 a liter would drive up the cost of production leading to the closure of industries, which are already struggling to survive in an adverse industrial climate in the country.[break]



Abhinash Bohara, president of Morang Trade Association, told the press that business entrepreneurs wouldn´t buy the diesel at the recently increased price and demanded that the government revoke the decision.



State-owned Nepal Oil Corporation (NOC) had decided on Saturday to introduce the dual-pricing for diesel and kerosene increasing the price to Rs 95 per liter for industries, hotels, hospitals and diplomatic missions, leaving the existing price of Rs 76 per liter unchanged for general public and transport sector.



“NOC has transferred its loss to business entrepreneurs by increasing the price of diesel. We will take to the streets if the government fails to revoke the impractical decision,” said Bohara.



Dinesh Golchha, president of Morang Industry Association, said business people are not in a position to buy diesel at the increased price, which they say, would weaken the competitiveness of domestic industries and encourage inflation.



“The government has increased the price of diesel instead of giving relief to industries that are facing a tough time to compete with international products. We wouldn´t buy diesel until the government returns to the single price system for diesel,” said Golchha.



The joint-statement says the hike in diesel price would force over 40 percent of industries along the Sunsari-Morang industrial corridor to close their operations.



During the six-hour long load-shedding, industries operating along the corridor are consuming up to 1,500 liters of diesel every day. Amid worsening power outage, industries in the areas have cut down on the production volume by over 40 percent.

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