At a time when the whole country is reeling under a severe petroleum supply crisis, Rajendra Mahato, minister for industry, commerce and supplies on Saturday claimed that supply would be back to normal within a couple of days.
However, his claim after the state-run petroleum entity - Nepal Oil Corporation (NOC) yesterday warned that the supply of petroleum products would worsen further unless an immediate arrangement to clear the dues of the Indian Oil Corporation (IOC) is made.
Speaking at an interaction organised by the Reporters' Club here on Saturday, Mahato said that the government would clear the last two months' dues of about one billion rupees to the IOC by Monday. "The government, in principal, has agreed to release Rs 1.0 billion to clear dues and import bills for the months of April and May," he informed.
He further said that the senior leaders of eight ruling parties have been apprised about the supply situation and NOC's financial condition. "The present crisis, mainly, is due to our inability to pay the dues on time," Mahato said, adding that the government has now left with two options either support NOC with Rs 500 million each month or adjust the prices of the petro products at par with the international price.
He, however, said that final decision to adjust the prices of petroleum products lies with the eight parties and the government. "If the eight-party alliance gives a green signal, government will make a gradual upward adjustment in prices. So, people won't feel a huge burden of price hike," Mahato said.
He also disclosed that options have been sought to involve private sector for the trading of petroleum products. "At the beginning, government plans to handover the trading of liquefied petroleum gas (LPG) to private parties," he said.
To ensure smooth supply of the petroleum products, the government needs to provide the NOC with financial support of about Rs 4 billion, if the prices are kept static unless the constituent assembly elections is held. The support is required to meet the monthly losses of Rs 254.8 million and additional payment of Rs 240 million to clear dues to IOC.
According to him, NOC's current total liabilities stand at Rs 10.20 billion including Rs 5.96 billion dues of IOC and Rs 4.26 loans of various domestic financial institutions.
Most petrol pumps went dry four days back, while the NOC's stock yesterday dropped to an all-time-low at 'dead stock' level. NOC has already stopped distribution of petroleum products from Friday evening in the valley, stating that it cannot use the dead stock.
However, his claim after the state-run petroleum entity - Nepal Oil Corporation (NOC) yesterday warned that the supply of petroleum products would worsen further unless an immediate arrangement to clear the dues of the Indian Oil Corporation (IOC) is made.
Speaking at an interaction organised by the Reporters' Club here on Saturday, Mahato said that the government would clear the last two months' dues of about one billion rupees to the IOC by Monday. "The government, in principal, has agreed to release Rs 1.0 billion to clear dues and import bills for the months of April and May," he informed.
He further said that the senior leaders of eight ruling parties have been apprised about the supply situation and NOC's financial condition. "The present crisis, mainly, is due to our inability to pay the dues on time," Mahato said, adding that the government has now left with two options either support NOC with Rs 500 million each month or adjust the prices of the petro products at par with the international price.
He, however, said that final decision to adjust the prices of petroleum products lies with the eight parties and the government. "If the eight-party alliance gives a green signal, government will make a gradual upward adjustment in prices. So, people won't feel a huge burden of price hike," Mahato said.
He also disclosed that options have been sought to involve private sector for the trading of petroleum products. "At the beginning, government plans to handover the trading of liquefied petroleum gas (LPG) to private parties," he said.
To ensure smooth supply of the petroleum products, the government needs to provide the NOC with financial support of about Rs 4 billion, if the prices are kept static unless the constituent assembly elections is held. The support is required to meet the monthly losses of Rs 254.8 million and additional payment of Rs 240 million to clear dues to IOC.
According to him, NOC's current total liabilities stand at Rs 10.20 billion including Rs 5.96 billion dues of IOC and Rs 4.26 loans of various domestic financial institutions.
Most petrol pumps went dry four days back, while the NOC's stock yesterday dropped to an all-time-low at 'dead stock' level. NOC has already stopped distribution of petroleum products from Friday evening in the valley, stating that it cannot use the dead stock.