Govt slashes fuel prices

KATHMANDU, MAR 20 -
Bowing to intense pressure from the opposition parties, the government on Thursday slashed the prices of petroleum products by more than 50 percent on the revised rates, except on aviation fuel.

The Legislature-Parliament which was halted for two consecutive days over the recent hike in fuel prices resumed immediately after the government decided to readjust the prices.

Informing the House about the government decision, Minister for Forests and Soil Conservation Mahesh Acharya said the price of petrol has been reduced by Rs 5.5 per litre and Rs 3.5 each in diesel and kerosene. The latest revision means petrol will now cost Rs 134.50 per litre, while diesel and kerosene will cost Rs 105.50 per litre each. The new price will come into effect from Friday.

Earlier on March 14, following government consent, the Nepal Oil Corporation (NOC) had hiked the price of petrol by Rs 10 per litre and diesel and kerosene by Rs 6 per litre each.

However, the price of aviation turbine fuel has remained unchanged. The government had increased the price of aviation fuel by Rs 6 per litre for domestic airlines and $100 per kilolitre for international carriers.

The government has asked Speaker Subas Nembang to institute a parliamentary committee to study and recommend reforms at the NOC, and submit a report within 30 days. The committee will also deal with the prices of other essential items such as milk, potable water and ration.

Minister Acharya also spelled out some measures to curb the losses being incurred by the state-owned oil monopoly. Among other things, he suggested to withdraw the NOC system of fuel coupon distribution and stipend for dress to its staff. Similarly, the NOC employees will have to now undertake electronic attendance. The government also plans to install GPS system in fuel tankers to trace their movement.

Minister Acharya urged the agitating student unions to withdraw all their protest programmes.  Fifteen different student unions had called a general strike in the Valley on Wednesday to pressure the government to revoke the decision to hike fuel prices.

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