The government had passed Petroleum and Gas Transaction Regulatory Order on March 13, paving the way for private players to import, process and distribute petroleum products, and ending the monopoly of state-owned Nepal Oil Corporation (NOC). [break]
“We have invited entrepreneurs who are against the regulatory order for discussion,” said Deepak Subedi, joint secretary at the Ministry of Commerce and Supplies (MoCS).
Nepal Petroleum Dealers National Association, Nepal LP Gas Industries Association and Nepal Petroleum Tankers Operators Association have said that they´d halt the sales and supply of petroleum products nationwide from April 2 to exert pressure on the government to withdraw the decision.
Subedi, however, said the government was in no mood to backtrack from its decision. “We will do our best to address the grievances of entrepreneurs,” added Subedi.
The Department of Commerce (DoC) has already started preparing a guideline to be followed by petroleum dealers in line with the order.
Five private companies, Koshi Petrochemicals, Birat Petrochemicals, Chandi Lumbini Company, Malika Petrochemicals and Bishal Enterprises have already applied with the government seeking permission for transaction of petroleum products. In the order, the government has fixed paid-up capital of Rs 20 billion for refinery, Rs 10 billion for petroleum importing company, Rs 5 billion for LPG importing firm and Rs 500 million for gas refilling company.
Entrepreneurs announce protest
Petroleum dealers have announced a series of protests against the government´s move to open up petroleum sector to private companies.
Organizing a press conference on Sunday, they warned of bringing petroleum transportation and sales to a standstill from April 7, if the government failed to withdraw the Petroleum and Gas Transaction Regulatory Order issued two weeks back. Petroleum entrepreneurs are making hefty profits from transportation and sales of petroleum products given the mismanagement in ailing NOC.
They have objected to the provision in the order that requires a petroleum entrepreneur to acquire license to import, store, transport and sell petroleum products, stating that this provision would wipe out the small entrepreneurs.
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