At a press conference, apex organization of the Nepali business community said dual pricing will drive up the cost of production for the industrial sector, which is already facing persisting slowdown.[break]
Board of directors of Nepal Oil Corporation (NOC) on Saturday set the price of diesel and kerosene at Rs 95 for industries, hotels, foreign missions, hospitals and development projects while for the general public, it will be available for Rs 76 a liter.
Bhaskar Raj Rajkarnikar, Acting President of FNCCI, said dual pricing would lead to closure of industries, promote corruption and encourage black-marketeering in diesel and kerosene. “At a time when load-shedding is directly affecting industrial production, making it difficult for domestic products to compete in international markets, NOC decision will hurt manufacturers and rause prices in the market,” said Rajkarnikar. He said production of electricity on diesel will cost Rs 30.25 per unit, up from existing Rs 25 a unit.
Pashupati Murarka, Vice-president of FNCCI, said a hike of Rs 19 per liter in diesel and kerosene would drive up the cost of cement by Rs 11 per 50kg sack. “This means imported cements will become cheaper than the domestic brands leading to closure of Nepali industries,” said Murarka.
He also said industries which are producing plastic, yarn, cotton, among others, which require high diesel consumption would see a sharp rise in production costs.
Leaders of district chambers of commerce and industry suggested that the business people launch protests to exert pressure on the government to rollback the decision.
Office-bearers from chambers of commerce and industry from Siddharth Nagar, Morang and Birgunj demanded the decision be revoked as soon as possible as it would be detrimental to the industrial sector.
They said the new decision is against the government´s earlier announcement to provide subsidy of Rs 10 per liter on diesel to the industries. They advised the NOC management to bring irregularities under control within the organization rather that hiking the fuel price in the name of reducing burgeoning losses.
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