The state-owned Nepal Oil Corporation (NOC) officials have said that they will not be able to ensure smooth supplies of petroleum products unless the market price is increased again at par with the rise in international market.

According to NOC spokesperson Ichha Bikram Thapa, when the NOC made the recent price hike decision on October 24, the international market price of crude oil had stood at US$ 82 per barrel (159 liters) of crude oil. This price, he said, has already increased and is reaching near $100 per barrel in recent days. He said that in the last one month, the NOC’s monthly losses have increased from Rs 70 million to Rs 370 million due to rise of price in international market.

“As our import price with the Indian Oil Corporation has increased, we are in difficult position and compelled to hike price again,” said Thapa.

He said that in order to resolve the fuel crisis once and for all, the government should explore the option of involving private sector in the sales and distribution of petroleum products, fix market price at par with international price and consider giving tax discounts.

The NOC had paid Rs 8 billion as revenue to the government in the fiscal year 2063/64. The government says that revenue collected from petroleum products are being used in social sectors like education and health and cannot be done away with for the time being.

Meanwhile, economist Dr. Raghab Dhoj Pant believes that since the people have been paying tax, the government must ensure smooth supplies. “People have paid Rs 8 to 9 billion tax last year. And they are still forced to stand in long queues to get petrol,” Dr. Pant said.

Dr. Pant asked the seven parties to come up with clear policies on petroleum and warned that economic problems would become far worse than political problems, if not addressed immediately.