Kathmandu, september 21:

Though the supply of petroleum products is said to be smooth from today, there is still a shortage in the market.

The shortage is, however, due to strike of Indian Oil Corporation (IOC) workers in India. “Petro-products could not be loaded as per Nepali demand in Indian depots,” says Iccha Bikram Thapa, spokesperson of Nepal Oil Corporation (NOC).

Nepal is also facing a shortage of LPG because the cash-strapped NOC was able to buy only 5,700 metric tonnes (MT) of LPG in August, according to Thapa. The total monthly demand of cooking gas in Nepal is about 8,800 MT.

In the recent weeks, Nepal saw a shortage of petroleum products that has hit the

business and industry fuelling the price hike.

Confederation of Nepalese Industries (CNI) issuing a press release today has said that the shortage of petro-products is heavily affecting business and leading to chronic price rises.

The press note lambasts the NOC policy of taking loans from government and asking India to increase supplies. “It is a short- sighted policy.

The only option is to raise the prices of petroleum products,” states the release.

CNI also suggests the government to decrease taxes and fees levied on diesel, kerosene and cooking gas. “Petrol prices should be increased and let the market decide the prices of all petroleum products in line with international prices.”