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Govt wants pvt sector to enter LPG business

   
  

Added At:  2012-04-18 11:14 PM

   Last Updated At: 2012-04-18 11:14 PM

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SHIROMANI DHUNGANA

KATHMANDU: The government will encourage the private sector to invest in Liquefied Petroleum Gas (LPG) business after the distribution of consumer cards is completed.

The government will not provide subsidy while purchasing cooking gas but rebate the amount by creating a separate mechanism, according to secretary at the Ministry of Commerce and Supplies Lal Mani Joshi. “It means the buying price of cooking gas will be adjusted according to the international price after the distribution of consumer cards is completed.”

The selling price of Nepal Oil Corporation and private companies then will be similar which will pave the way for the private sector to enter the business,

he added. The government has, legally, already opened the way for the private sector to establish gas companies, according to him. “But the private sector has been pointing to the pragmatic problem of the lack of price

adjustment by Nepal Oil Corporation (NOC).”

The government will test whether the private sector is ready for investment after completing the distribution of consumer cards, he added.

“Debt-stricken Nepal Oil Corporation often fails to import cooking gas in line with the market demand,” he said, adding that the problem of short supply in the market will end if the private sector enters the cooking gas business in a competitive manner. “At least those who have the money to buy at a higher price will easily be able to get cooking gas after the private sector starts operations.”

Meanwhile, though the Gas Dealers Federation of Nepal officially started the distribution of consumer cards by providing a card to the prime minister, general consumers will have to wait for two more days to fill the form for consumer cards, according to NOC. “NOC has already provided consumer cards to the federation but it will take time to provide the forms to all the dealers,” said deputy director at NOC Sushil Bhattarai. “People living in rent in Kathmandu will also be provided consumer cards even if their families are residing outside the valley.”

The corporation will develop a separate database of consumers after collecting the forms from the dealers which will help end malpractices such as hoarding and cartel by dealers in the future, he added. NOC will also strictly direct dealers to introduce an easy system of exchanging cylinders of one brand with another after the introduction of consumer cards.

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