SANGAM PRASAIN
KATHMANDU, APR 26 -
Even as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products.
NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash.
“Prime Minister Jhala Nath Khanal is not in favour of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis.
Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
Rupandehi, Nawalparasi, Chitwan, Makwanpur, Bara and Parsa are facing acute fuel shortage. The shortage has affected public transportation system and industrial areas. “Low supply of fuel has dramatically affected the market in Chitwan,” said Kashi Pathak, president of Chitwan Petroleum Dealers’ Association.
Black marketeering and hoarding of petroleum products is rampant in Birgunj. “NOC has been supplying five to seven tankers full of fuel to Birgunj,” said Nagendra Kurmi, NOC chief in Birgunj. According to a source traders are selling fuel charging an additional Rs seven per litre. Traders are supplying fuel to big industries, crusher and brick factories at big profits, the source claimed.
Tourist hotspot Pokhara and adjacent districts are also facing acute fuel shortage for the last few days. The supply in Pokhara has been slashed to 36,000 litres per day from the usual 50,000 litres. Reduced petroleum supply in the Far Western region has affected normal life aside from development projects. Construction and irrigation both are hit. The entire region has a monthly 4 million litres diesel consumption. However, for the last two weeks, the region has received only 800,000 litres.
Normal life in Nepalgunj, Gulariya, Surkhet and Dang in the Mid Western region has been affected by the fuel crunch ever since petroleum import from Gonda in India stopped last week.
The eastern region has been receiving only 150,000 litres of diesel a day against the usual 400,000 litres per day. Mechi, Koshi and Sagarmatha zones in the Eastern Development Region have 450 petroleum dealers. All refuelling stations under the dealers’ distribution have hung up ‘no fuel’ placards. Last week, Digambar Jha, Managing Director of NOC, warned that the supply could be further curtailed if the government does not address the issue immediately. At the current rate, the supply will be slashed by 40 percent in April and 20 percent each month thereafter.
