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Ending decades of monopoly by the state-run oil company, Nepal has
allowed the import and sale of petroleum products by the private sector
in an effort to help ease fuel supplies.
Announcing a major step
towards liberalising petroleum trade, on the day when the government
hiked up fuelprices, the authorities here issued guidelines for
allowing the private sector to import and sell petroleum products in
the country.
"Interested private companies can import fuel from any part
of the world and sell at their own prices," said Nepal Oil Corporation
(NOC) chairman Purushottam Ojha, adding that the quality of the
products would, however, be monitored by the government.
He said the government will come out with "detailed regulations/standards in this connection" soon.
The government announced a steep hike in petroleum
prices to cope with the soaring prices in the international market. The
NOC hiked the price of petroleum products and cooking gas by around 20
percent to adjust with the rising international price and to cover up
losses.
The price of petrol and diesel has been increased by 20
percent to NRs 100 and NRs. 70 respectively. Similarly, the price of
kerosene per litre has been increased to NRs. 65 while the cost of LPG
has been hiked by NRs. 100 per cylinder to NRs. 1,200, according to
NOC.
The NOC has recorded huge monthly losses as the fuel
products in Nepal is highly subsidised and the impoverished nation has
no oil reserves and relies on its giant southern neighbour India for
all its supplies.
High fuel prices and domestic supply problems are forcing the
authorities to deregulate the industry. The question now is to
see how the authorities regulate the new guidelines issued to the
independent fuel distribution market.
PetrolWorld 110608
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