What is delaying the commercial agreement to import petroleum products from China?
Shortage of petroleum products is more acute compared to other petroleum products because we are completely dependent on India for fuel. Delay in importing fuel from other sources is aggravating the crisis. The government, however, is doing its best to explore immediate and long-term options for petroleum imports. We have been seeking help from Bangladesh and different Gulf nations as an immediate solution. Similarly, we have already signed a Memorandum of Understanding (MoU) with China to import one-third of our demand from the southern neighbor so that we do not have to face similar situation in the future.
Regarding the commercial pact with China, we have finalized all technical issues with China except the taxation part. China National Petroleum Corporation (CNPC) has been awaiting its government's response for tax waiver on petroleum products to be supplied to Nepal. Moreover, we have already written a letter to the Chinese government, requesting it to not impose taxes on Nepal-bound petroleum products. However, we are yet to reach a deal with the Chinese firm for supply of LP gas as we don't have required infrastructure to bring LP gas to Kathmandu.
I am optimistic that commercial agreement with CNPC will be signed very soon.
Some say the commercial agreement is getting delayed due to political and bureaucratic pressure. What do you say?
It is not the case. I have not faced any political or bureaucratic pressure so far. I believe that the delay is because of procedural difficulties and ineffectiveness of state mechanism to finalize the deal. However, I am hopeful that talks at political level can expedite the process. A government-to-government dialogue between the two countries can resolve all the difficulties, paving the way for signing of the commercial pact.
It is said that China is reluctant to sign commercial agreement because Nepal has failed to assure the northern neighbor of long-term fuel trade. Is this true?
I do not think that China is reluctant as both the nations have already signed a framework agreement. Similarly, commercial agreement is at the last stage of signing. However, it is true that we have to do lot of things to win China's trust. Learning lesson from our past mistakes, we should make optimum use of trade points with China by developing necessary infrastructures. Nepal should demonstrate strong willingness to enter into long-term trade relation with China by bringing different short-term and long-term plans and policies to diversify its trade.
The government recently welcomed private sector in petroleum business. Also the cabinet has allowed privately-owned firms to import petroleum products for their use. Is this just a stopgap measure?
Though the government has opened the door for private sector to involve in petroleum business, not a single firm has succeeded in bringing fuel to the country. They failed to import petroleum products as airlifting is expensive and it is impossible to transport fuel through the Indian border in present context. We have opened petroleum trade to private sector. But these firms will have to adhere to different parameters set by the government
The cabinet's decision to allow firms to import petroleum products for their internal use is a temporary arrangement. We will study their need assessments before allowing them to import petroleum products. Moreover, the government will also monitor the use of petroleum products imported by them.
Experts have been urging for structural reforms in NOC and formation of a regulatory body to oversee petroleum business? Isn't it the right time to usher in reforms in NOC?
It is not possible to bring structural reforms in NOC at present as it needs detailed study. What we can do right now is solve problems within NOC structure. As part of this, we are probing alleged involvement of NOC officials in different anomalies in distribution of petroleum products. We have kept a close eye on each and every activity of NOC and its officials.
The NOC board is preparing to take action against NOC chief Gopal Bahadur Khadka. Where has the case reached?
The NOC board is studying clarification furnished by Khadka. The cabinet will take appropriate action against him based on the report and recommendations of the NOC board.
What are your plans to control black market of essential commodities and assure people that they won't be cheated?
Though we have been doing our best to control such activities and punish such traders, the government is facing difficulty in controlling such anomalies as Nepal shares open border with India. However, we have mobilized monitoring teams comprising of different line agencies to control such irregularities. Moreover, we have formed a high-level team to monitor activities of monitoring teams. Similarly, we have also set up Rapid Response Team at different government offices to hear complaints and grievances of people.
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