The state-owned petroleum monopolist came up with the demand at a time when crude prices in the international market has continued to jump, threatening to swell its loss further and affecting its capacity to import enough for smooth supply.[break]
“The Jan 1 price list of the Indian supplier has already jacked up our loss to around Rs 650 million a month. Rise in international prices could soar that to Rs 750 million on January 16," NOC Managing Director Digambhar Jha said.
Given the situation, Jha said there was only two ways to maintain NOC´s capacity to import enough: either the government pledge finances for import or allow the corporation to adjust domestic prices in line with the international trend.
"Choosing one against the other might be a tough job, but it is high time the government clarified which course it wants to follow to manage imports and ensure supplies. The decision will do justice to the people and economy as a whole as well," said Jha.
Speaking at a program organized to mark 41st anniversary of the state-owned petroleum monopolist, NOC top brass cautioned that consumers might once again reel under severe shortage of fuel if the government did not act promptly.
Nepali consumers had faced a severe short supply of fuel for around a year in 2009 when fuel price touched record high and government here refused to adjust prices accordingly.
"Unfortunately, similar threat is looming again," said Jha.
Minister for Commerce and Supplies Rajendra Mahato, who had been instructing NOC to get government´s nod prior to making any changes in prices, interestingly asked the corporation to take decisions on prices following the international trend.
"As the cabinet has already issued such authority to NOC board, I urge the board to exercise it," said Mahato. He, nonetheless, admitted that the long-running practice of forcing NOC to subsidize fuel was faulty.
"If there is to be subsidy, its cost should be shouldered by the government. Leaving the cost to an oil marketing company is impractical and unfair," he added.
Meanwhile, Saroj Pandey, president of Nepal Petroleum Dealers´ Association, charged the top NOC officials for growing corruption in the corporation. While anomalies at depot and rising leakage are unknown to all, he said, The corporation top brass were presently demanding Rs 350,000 for permission to open a petrol pump and Rs 1.5 million for licensing liquefied petroleum gas (LPG) bottling plant.
"NOC has become an institution that sells dealership and licenses," said Pandey. Officials of trade unions like Babu Ram Rai, who spoke on the occasion, agreed with Pandey.
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