Call to probe properties of former chiefs and present executive level NOC officers

Kathmandu, May 3:

Parliamentarians and leaders of various political parties today suggested the government not

to hike prices of petroleum products rather seek an alternative to compensate the mounting losses of Nepal Oil Corporation (NOC).

They also asked the government for restructuring and aggressive reforms of NOC, the state-owned petroleum products supply monopoly body, as well as adoption of effective measures to check leakage and irregularities.

Speaking at an interaction on current situation and challenges of supply of petroleum products organised by the ministry of industry, commerce and supplies (MoICS) here today they warned the government of revolt if prices were hiked.

Making a presentation, Purushottam Ojha, acting secretary at the MoICS said that NOC is facing an acute fund crunch, while it has been incurring loss every day for the last five years. “The accumulated loans to be repaid by the corporation have already crossed Rs 10.20 billion and its current monthly loss stands at Rs 190 million,” he informed.

Due to lack of adequate liquidity, NOC has not been able to ensure smooth and sufficient supply of petroleum products, Ojha said, adding that the projects of infrastructure development works such as construction of pipeline between Amlekhgunj and Raxaul, establishing LPG bottling plant and additional storage tank have yet to be materialised.

Presenting the details of stock of petroleum products with NOC, he said the current stock is at record level low that would only meet the demand for about 2-5 days. “A serious crisis is inevitable in near future, if proper action is not taken immediately,” Ojha said.

Commenting on the occasion, Rajendra Prasad Pandey, the CPN-UML lawmaker said that the issue of petroleum products is very sensitive. “If the prices are hiked without consulting all concerned stakeholders, the constituent assembly elections could be directly affected,” he added.

Sunil Prajapati, a Nepal Workers and Peasants Party’s lawmaker demanded the probe

into properties of former chiefs and existing executive level officers of NOC. He also asked the government to make public all transactions and property details of the corporation.

Another lawmaker Binay Dhoj Chand of Nepali Congress suggested that the government should seek alternatives to compensate the losses, while keeping the prices of petroleum products affordable and ensure smooth supply. He further said that NOC should take initiative to control adulteration and flow back situation along the Indo-Nepal border.

“Price hike is not only the option. Government should deregulate the petroleum supply with involvement of private sector. This will lessen the burden of NOC,” said Balaram Gharti Magar of Rastriya Prajatantra Party.

Keshav Nepal of CPN-Maoist strongly opposed the idea of price hike at the present situation. “When the whole country is gearing up for CA polls, the price hike would invite another severe crisis in the country. It would be wise to seek alternatives and control leakage and irregularities within the system before taking any step further,” he said.

Kaman Singh Lama of Janamorcha Nepal, Kumar Belbase of United Left Front, Hukum Bahadur Singh of Rastriya Janamorcha and Khem Raj Regmi of NC-Democratic were also against the price hike.

Meanwhile, Rajendra Mahato, minister for industry, commerce and supplies on the occasion assured that the government would not hike the prices of petroleum products without consensus of all parties.