The government had on Sunday invited petroleum entrepreneurs to talks after the latter protesting the government´s recent decision to open up the petroleum business to the private sector threatened to stall the supply of petroleum products across the country. [break]
The government had brought Petroleum and Gas Transactions Regulatory Order on March 13 that allows the private sector firms to set up petroleum refinery and import and distribute petroleum products. The order in effect ends the monopoly of the Nepal Oil Corporation (NOC).
During talks chaired by MoCS secretary Lal Mani Joshi on Monday, the petroleum entrepreneurs were adamant on their demand for revocation of the order.
“The talks couldn´t proceed as entrepreneurs refused to budge on their demand for complete revocation of the order although the government is always ready to discuss the contentious points of the order. We have asked them to come up with the points they find objectionable,” Deepak Subedi, joint secretary at MoCS told Republica.
However, entrepreneurs say the order should be revoked completely because it was brought in clandestine manner without consulting them. “Our one-point demand is that the government must cancel the order brought in clandestine manner. We will be compelled to bring the petroleum supply to a complete halt if our demand is ignored,” said Khageshwar Bohora, who is coordinator of central struggle committee.
Nepal Petroleum Dealers National Association, Nepal LP Gas Industries Association and Nepal Petroleum Tankers Operators Association have said that they would halt the sales and supply of petroleum products nationwide from April 2 to exert pressure on the government to withdraw the decision.
MoCS officials however said these petrol suppliers and transporters who are earning hefty profits by flouting the minimum safety standards are opposing the order because it attempts to regulate the petroleum business in the country.
In the Order, the government has fixed minimum paid-up capital for setting up a refinery at Rs 20 billion, Rs 10 billion for petroleum importing and distributing company, Rs 5 billion for LPG importing company and Rs 500 million for gas bottling company.
Five private companies, Koshi Petrochemicals, Birat Petrochemicals, Chandi Lumbini Company, Malika Petrochemicals and Bishal Enterprises have already applied for permission to deal with petroleum products.
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