Kathmandu, October 27:

Speakers at an interaction were split today over the recent rise in price of petroleum products.

Addressing an interaction organised by the Media Group Nepal, Eccha Bikram Thapa, spokesperson of the Nepal Oil Corporation (NOC) said the price rise in petroleum had to occur because the Corporation could not keep on buying petroleum products at higher prices and selling them at lower prices.

He said that the Indian Oil Corporation (IOC) was not providing petroleum because the NOC did not have enough money for the purchase. The rise in the price in international crude oil was another factor leading to rise of fuel price here. Nepali Congress leader Prakash Sharan Mahat said that the subsidy on petroleum products was only benefiting the well-off and it was illogical for the government to continue it.

The government, instead, should find out the vulnerable groups and provide subsidies to them on petroleum products like kerosene and syndication system in the transportation sector should be ended at the earliest to check irrational price hike.

Bishwo Aryal of Nepal Petroleum Dealer’s Association said the subsidy of Rs 100 in cooking gas must be discontinued because only five per cent of the total population use LPG.

He also asked why there was a profit margin in kerosene, which is used mostly by the poor.

Senior Maoist leader Dev Gurung said his party has always opposed raising the price of petroleum products. He said that petrol should be imported from China also because this would cost less and also make the market more competitive.

He also accused that there was a conspiracy in Nepal to destroy public enterprises and privatise them. He further said the King’s property could be nationalised to pay for the subsidy in the short term. Surendra Bir Malakar, the president of Nepal Chamber of Commerce said the NOC did not discuss with them about the price hike.

He said Nepal should adopt a two-pronged price system for petroleum — higher prices for the business sector and lower for the private sector. Dol Nath Khanal of Nepal Transport Association said the government should either take back the price hike decision or transport costs would rise and also there would be higher percentage of inflation.

Bhim Bahadur Tamang of All Nepal Transport Worker’s Union said that the price hike would

hurt workers.