“We can´t offer similar price of LPG giving subsidy to all class of consumers. It is the duty of the government to ensure relief to the poor people. We have begun the homework to introduce dual-pricing in LPG,” said Bhatta at an interaction organized by the Ministry of Commerce and Supplies (MoCS) to seek suggestions from the stakeholders for proper management and supply of petroleum products in the country. [break]
"Though it may be unpleasant, we will decide to increase the price of LPG within one week," Bhatta said.
He said low income group people such as farmers, laborers and students have been identified as the beneficiary of the subsidy. He also said the color of gas cylinders will be made different for subsidized and non-subsidized LPG cylinders. The MoCS will introduce the card system to minimize the misuse of subsidy.
Bhatta also said that the MoCS would take bold steps and increase the price of LPG soon keeping in view the massive loss suffered by Nepal Oil Corporation (NOC) while dealing in LPG. NOC - the state-owned petroleum monopolist - has been suffering a loss of Rs 288 per 14.2-kg LPG, Rs 13.13 per liter in diesel, Rs 1.81 per liter in kerosene, leading to a total monthly loss of around Rs 900 million.
However, Saroj Pandey, president of Nepal Petroleum Dealers Association, asked the government to make an effective mechanism and minimize the misuse of subsidy before introducing the dual-pricing system.
On the occasion, consumer rights groups and petroleum traders advised the government to immediately open up the petroleum sector and end the monopoly of NOC, which has failed to maintain a smooth supply of petroleum products in the country.
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