“The government must end the shortage within a couple of days,” said Nepali Congress lawmaker Nabindra Raj Joshi, who led a delegation of Constituent Assembly members to Nepal Oil Corporation (NOC).[break]
The delegation met the top management of Nepal Oil Corporation (NOC) and sought clear answer on when the shortage would end.
NOC chief Digambar Jha informed them that the situation was beyond the corporation´s control as it neither has enough fund to ensure adequate fuel supply nor possesses authority to hike prices which, the corporation thinks, is key to solving the problem.
"NOC is debt-ridden and has no cash to finance imports. No financier trusts us with loans. So, even I do not know when the shortage will end," said Jha. Irked by Jha´s irresponsible answers, the lawmakers instructed NOC to act responsibly.
Jha said in order to end fuel shortage the government needs to develop a clear perspective on how it wishes to manage fuel pricing. "There are only two ways to solve the problem: the government either let us hike prices or pledge loan support. However, the government has denied us both," he said, adding that the corporation can step up imports and end the shortage within few days if the government arranged loans.
Lawmakers lamented over the need to queue up for hours to get fuel, a situation that surfaced after the sole Indian supplier curtailed export to Nepal by one-third citing lack of payment by NOC.
Contradicting the market situation, Jha said that the corporation was currently distributing more than the normal volume of fuel in the market. "The daily demand of petrol in the valley in any normal period is just over 250 KL. We are supplying well over 300 KL a day presently," said Jha.
His claim drew instant criticism from lawmakers but Jha defended himself by attributing the situation to increased hoarding by consumers.
"People believe that shortage is imminent as they don´t think we can manage supplies, hence they are hoarding fuel," said Jha.
Jha stressed that frequent incidences of fuel shortage was mainly due to government´s lack of will to make price adjustments. "We are under a debt of about Rs 15 billion and are suffering loss of about Rs 2 billion a month. Is it due to NOC´s inability or government´s inability to adjust prices?" Jha questioned.
Jha said he has already submitted more than four different plans on how to adjust prices without hurting the poor. "The proposals reached the cabinet, but failed to draw government´s response," said Jha.
NOC pushes for dual pricing
KATHMANDU (Republica): Nepal Oil Corporation has proposed that the government that has refused price hike till May 28 -- when the tenure of CA ends, allow it to enforce dual pricing on petrol and diesel.
The proposal submitted by the NOC managing director Digambar Jha to the Ministry of Commerce and Supplies on Thursday states that it will charge higher prices with diplomatic missions, industries, automobiles, hotels, restaurants and commercial ventures, while keeping the price unchanged for general public, hospitals and media, among others. The corporation, however, has not clarified the extent by which this move will bring down the losses. Neither has it devised measures to check leakages.
"This will at least plug the flow of state subsidy to the groups that do not need them," Jha told Republica. He said his proposal is in line with Prime Minister Jhalanath Khanal´s announcement that he would not put additional financial burden on the commoners by raising fuel prices. To implement its proposal, NOC plans to designate separate petrol pumps for selling the oils at market rates.
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