SANGAM PRASAIN
KATHMANDU, FEB 01 -
The parliamentary Public Accounts Committee (PAC) formed a seven-member subcommittee on Monday to prepare a report on Nepal Oil Corporation’s price adjustment, fuel transportation system, financial audit and capability to maintain adequate fuel stocks at its depots should an emergency occur.
Constituent Assembly member Dhan Raj Gurung is coordinator of the subcommittee which plans to prepare the report within one month. PAC has put the state-owned oil monopoly under its scanner following widespread criticism from consumers, consumer rights activists and political parties over its irregularities and reluctance to conduct organizational reforms.
Lawmakers had been urging NOC to implement a scientific price adjustment policy to match international market prices. They have also asked NOC to put up public signs showing the price of fuel in Kathmandu and other districts for greater transparency.
Another major issue concerning NOC is the low capacity of its depots. NOC has been told to expand the capacity of its depots to stock petroleum for at least four months. “NOC needs to develop strategic depots to stock fuel enough for at least three-four months in case of political turmoil, strikes and other natural calamities,” said lawmaker Prakash Chandra Lohani.
Transportation and NOC’s annual audit report are other issues pointed out by the lawmakers. PAC had directed NOC to submit by January 24 its financial details for the last three years and the quantity of petroleum products imported.
The committee had summoned NOC officials and Finance Ministry officials to grill them about oil imports, NOC’s plan for organizational reforms and irregularities.
The fuel price disparity between Nepal and India is another issue. According to NOC, the recent price hike by Indian Oil Corporation (IOC) has made gasoline cheaper in Nepal.
NOC said that petrol and aviation fuel cost Rs 10 less in Nepal compared to India which could encourage smuggling. “Prices in Nepal and India should not differ by more than 10 percent,” said Lohani.
