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anjeet
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 Oil Politics !!!!!!!!!!!!!!!!!!!
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Posted on 08-21-06 6:42 AM     Reply [Subscribe]
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Nepal Oil Corporation has withdrawn fuel price rises after a wave of protest around the country.

Was the increase of price of fuel a political decision or the business decision?

As per the oil corporation, it was incurring Rs 832 million every month due to increase on oil prices on international market. Due to the loss it was suffering, it had amassed the liability of Rs 11.7 billion.

Has anyone ever analyzed why NOC is making such a Hugh loss? Is it due to inefficiency on NOC board or due to oil politics?? How long can NOC sell the oil below its cost price? Is it the government who is holding back the price because it is afraid of making unpopular decision on raising price??

It will have impacts on different industry and daily life of the people, if it has to increase the oil prices. Also NOC can’t sustain making the losses for the indefinite period.

What do you guys think, should the oil price depend on international market price or the decision of the government?

Personally, I think there should be a mechanism on fixing the price, independent to the government, which should adjust the price monthly according to the international market price.
Pricing policy however should take an account how much subsidy the government wants to provide as a relief to the public.
Have your say
 
Posted on 08-21-06 1:58 PM     Reply [Subscribe]
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I'd say it should be entirely market driven. However, I think that is unlikely to happen in Nepal because diesel is subsidized as a measure of controling inflation (because goods are transported on diesel trucks). To move to a market regulated mechanism in the long run, Nepal needs to move away from diesel subsidies, perhaps by building a electric railway/bus system for ferrying goods and people across the country. Without this happening, I don't see how we can move to a market regulated system without causing a major political upheavel.
 
Posted on 08-21-06 5:29 PM     Reply [Subscribe]
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fuel oil should be subsidized in Nepal to much greater extent than any average consumers would expect to get.

One day when the NOC becomes totally defunct under the weight of its own past deficits there will no longer be NOC nor the subsidy.

This is the best way in the socio-political context of Nepal to end subsidy.
 
Posted on 08-21-06 10:02 PM     Reply [Subscribe]
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HAHAHAHAH..
NEPALESE ARE SERIOUSLY FUNNY PEOPLE ..HAHAHAHA

Petro dealers on nationwide strike from Tuesday

Kantipur Report

KATHMANDU, Aug 21 - Nepal Petroleum Dealers Association (NPDA) on Monday took the decision to hold a nationwide strike from Tuesday directing all its member dealers not to sell petro products from any of its outlets.

Shiv Prasad Ghimire, president of NPDA said, “We have decided to go on a nationwide closure of all our petrol pumps and will not be buying any further stock from any of the depots of the NOC in the country,” adding, “from Tuesday, we will not sell any petroleum products from any of the petrol pumps in the country.”

The NPDA took the stand after the government refused to agree with the three percent commission in retail price that the dealers were reaping.

The dealers also demanded that the Minister for Industries, Commerce and Supplies resign if the retail price is not fixed in accordance with the current system.

Alleging the NOC of erratic and unmanaged supply of petroleum products, the NPDA also asked the resignation of deputy general manager of the NOC, Umesh Dahal.

The dealers also demanded "compensation for the damage done to some petrol pumps" during the protests against price hike on Saturday and Sunday and asked the government to refund the money that they paid to buy the stock when the prices were high.

The association confirmed that it has stopped buying petroleum products from the NOC from Monday evening.

The dealers also submitted a memo to the Prime Minister today.

Earlier today, the valley saw an erratic supply of petroleum products. None of the private petrol pumps today sold petro products, hence the Sajha and some security force-owned petrol pumps saw serpentine queues throughout the day.

Bowing down to mounting pressure from the general public, the government on Sunday had nullified its Friday's petro price hike decision.

Posted on: 2006-08-21 01:15:47 (Server Time)
 


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