Nepal: Another Report to Privatise Fuel Business

 A new report from the subcommittee of Public Accounts Committee (PAC) in Nepals under Legislature Parliament has recommended that the government ensure competition in fuel downstream business sector by way of privitisation.

This is one of a number of different committees and reports that have  suggested the government involve the private sector in the fuel distribution and retial business. They also state that the monopoly of Nepal Oil Corporation in import, supply and storage of petroleum products, is no longer appropriate and results in fuel supply shortages problems. At the same time, there needs to be legislation and guidelines introduced to regulate the industry.  After Nepal Oil Corporation’s 40 years of operation, the country has no law that could guide petroleum business.

The committee has suggested the government to form a monitoring committee led by a member of National Planning Commission (NPC). A member of the committee, Mr Gurung, has stated “The government has to form a committee led by the member of NPC until an independent authority to monitor and inspect the business comes into operation,”   said, adding that the government should include secretaries of home, finance and commerce and supplies ministries in the committee except representatives from entrepreneurs and consumer rights activists. The committee should focus on formulating fuel policy, price adjustment, import and supply of petroleum products and market inspection and monitoring to ensure smooth supply checking the black-marketing, Gurung said, adding that the committee has also directed the government to study possibility of importing petroleum products from new international sources.

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