The corporation had enforced dual rates on the petroleum product effectively from Friday, hiking price of diesel for industries by Rs 12.90 per liter, which is equivalent to the loss suffered by the state oil import monopoly while bringing in the fuel from India.[break]
This means, industries based in Kathmandu have to fork out Rs 97.9 for a liter of diesel, including market price of Rs 85 and Rs 12.90 surcharge, while industries based in the Tarai region have to pay Rs 96.40 per liter. The price of diesel is less in Terai districts, as the market price of the fuel in the region is fixed at Rs 83.50 per liter, Rs 1.50 less than in the capital.
To aid small and medium enterprises (SMEs), the NOC, however, has decided to make up to 4,000 liters of diesel available for Rs 85 per liter once a week. “This consignment will have to be picked up directly from the NOC depots,” Suresh Agarwal, acting chief of the NOC, told Republica.
For large scale industries that consume more than 4,000 liters of petrol per week but do not want to pay the surcharge, there is only one choice, according to Agarwal. And that is to import diesel from India themselves, he said.
For this, the NOC will issue product delivery order, which contains formal request to the Indian Oil Corporation - the sole oil exporter for Nepal - to release the popular industrial fuel to the bearer of the letter.
However, many industries are not likely to go for this option as they will have to purchase the oil at the Indian market price, which is again Rs 12.90 expensive than the local market price of Rs 85 per liter.
Industrialists in the eastern city of Biratnagar have heavily criticized the NOC´s recent decision citing it a ploy to create a rift in the unity of SMEs and large-scale industries.
“Production costs in the country´s industries have gone up due to frequent power cuts and skyrocketing prices of fuel,” Avinash Bohra, president of Morang Trade Association, said.
“If the government does not roll back its decision, industries will have to cut down their production, which will result in culling of thousands of jobs and loss of revenue to the government,” Shiv Shankar Agarwal, officiating president of Chamber of Industries Morang, said.
Earlier on Dec 10, the NOC had decided to slap different rates on diesel, making the fuel meant for industries, hotels, hospitals and diplomatic missions dearer by Rs 19.
However, it later had to revert on its decision due to pressure from industrialists.
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