Restore normal supply: Petro-dealers

KATHMANDU, April 21: Petroleum dealers on Thursday urged the government to end the fuel scarcity the country is facing for over a week.



The dealers also said they think scarcity will reappear every now and then unless the government eliminated subsidy and pushed for adjusting fuel prices in line with the international market so that frequent fuel shortage caused by Nepal Oil Corporation´s (NOC´s) inability to finance imports could end permanently.[break]



The dealers also urged the government to introduce strong steps to plug leakages in NOC and cut taxes imposed on fuel.



“Mere adjustment in the prices without reforms in NOC will do injustice to consumers, as it will put the burden of NOC´s inefficiency cost,” said Saroj Pandey, president of Nepal Petroleum Dealers Association (NPDA).



He also urged the government to slash VAT on petroleum products to 6 percent. “Introduction of a different VAT rate will bring multiple VAT regime. But we think the government should do this to the relief of consumers,” said Pandey.  



NPDA officials argued that tax cut was necessary as Nepali consumers already reeling under double-digit inflation were not in a position to fully absorb soaring international prices as well.



Petroleum dealers admitted that Nepal has no capacity to give fuel subsidies and said the govenrment policy of subsidizing fuel is populist and flawed.

 

Moreover, petroleum dealers informed that the current spate of fuel scarcity, which has gripped the nation, might be extended to next week as well, as the Indian supplier has continued to cut supply by some 40 percent and NOC has not managed fund to order more.



NOC officials too expressed skepticism over the scarcity ending soon.



“We have stepped up the supply of petrol in the Kathmandu Valley from Thursday,” said NOC spokesperson. But he admitted that the corporation was not in a position to promise improvement in supply situation unless the government released the agreed loans soon.



He said the corporation pumped out 313 kiloliters of petrol in the Valley using the stock that is also depleting fast. The supply was better than previous days, but still short to fulfill normal demand which stands at around 350 kiloliters a day.

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