Nepal Petroleum Dealers National Association, Nepal LP Gas Industries Association and Nepal Petroleum Tankers Operators Association announced to bring the transactions of petroleum products to a standstill nationwide from April 2 to exert pressure on the government to withdraw the decision.[break]
The government had issued Petroleum and Gas Transaction Regulation Order allowing private players to imports and processes the petroleum products a couple weeks back ending monopoly of state-owned Nepal Oil Corporation (NOC) in petroleum product transactions.
At a time when consumers are facing frequent shortage of petroleum products due to inability of ill-managed NOC to maintain smooth supplies in the market, there had been strong demands for opening up the imports and processing of petroleum products to private sector.
Even business people were also for liberalizing the petroleum transactions for private sectors. In contrary to welcoming the government’s move, business peoples are in protest challenging its implementation. Petroleum entrepreneurs, who have been enjoying syndicate to ensure their bargaining power with the government, are protesting the government’s step.
The government had issued the order after its attempt to get Petroleum Act endorsed from the parliament failed due to strong resistance from Maoist lawmakers. Five private companies, Koshi Petrochemicals, Birat Petrochemicals, Chandi Lumbini Company, Malika Petrochemicals and Bishal Enterprises have already applied with government seeking permission for transaction of petroleum products. In the order 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.
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