“The shortage has its roots in the oil loss, which at present is worth Rs 1.50 billion a month. Unless we plug it, the supply will continue to remain in mess,” said Minister for Commerce and Supplies Lekh Raj Bhatta. His statement is pretty straight forward: The government has only one option if it is to restore normal supplies, and that is adjustment of petroleum prices in line with the international trend. NOC and experts, aware of the country´s fiscal capacity, agreed with Minister Bhatta. [break]
However, Minister Bhatta has not been able to convince Prime Minister Dr. Baburam Bhattarai. “The inflation is already high and the political environment is not suitable either,” that is what Dr Bhattarai has been conveying his ministers while deferring the issue.
Thanks to such apathy of the present government, which is merely a continuation of affairs that prevailed in the past, the country´s state-owned petroleum import monopolist on Tuesday announced that its cumulative loss as of mid-July 2011 has jumped to Rs 19 billion.
“We are already reeling under a debt of Rs 21 billion and has lost the strength to independently manage fund, import, and supply the fuels,” said Suresh Kumar Agrawal, acting chief of the corporation.
But as leaders in the government always relied more on political calculations than on economic prudence, consumers are left with no choice but to brave the cost of the government´s inability to provide basic commodities like fuel.
On Tuesday also, when NOC organized a program to mark its 42nd anniversary, thousands of consumers were queuing up at the refilling stations in Bhadrakali - just in front of Singha Durbar complex - to get hold of a few liters of petrol and diesel.
“If NOC is failing to maintain normal supplies, it is not because of its fault. The fault lies with our political culture and lack of will to act prudently,” said Bhatta.
He even opined that loans liability of NOC should be taken over by the government, and NOC should be freed from undue burden caused by political reasons. “I have already forwarded a proposal in this connection to the Cabinet. Hopefully, the Cabinet endorses it,” he stated.
Bhatta even disclosed he is holding talks with the Prime Minister for adjusting the prices and also providing VAT waiver on some of the products like liquefied petroleum gas in a bid to split the loss between the government and the consumers. He also stressed on the need to introduce sincere reforms in NOC in order to reduce its inefficiency and cost.
Meanwhile, speakers at the NOC anniversary function, like Saroj Pandey, president of Nepal Petroleum Dealers´ Association, urged the government to formulate a comprehensive energy policy, incorporating the petroleum business.
“Existing energy policy focuses on hydro-electricity and alternative energy only. Petroleum sector, however, is completely left in isolation. This disharmony must end,” he stated.
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