Students Urge PM to Withdraw Petroleum Price Hike

The eight student unions on Saturday submitted a memorandum to Prime Minister Girija Prasad Koirala, through his secretary, at his residence, demanding withdrawal of the decision to hike the price of petroleum products.
The students however could not meet PM Koirala because of his busy schedule.
A delegation with representation of all eight student unions submitted the memorandum at Baluwatar at around 4 pm.
The students have expressed deep concern over the recent hike in price of petroleum products and demanded its immediate withdrawal, claiming that the decision was taken without considering any other option to decrease the loss incurred by the Nepal Oil Corporation.
The students have also demanded that the government curb all irregularities in the NOC and improve the management of the corporation.
"Both long and short-term plans should be devised to generate alternative energy so as to lessen the dependence on fossil fuel," the memorandum states.
General secretary of All Nepal National Independent Students Union-Revolutionary had read out the memorandum at the PM's residence.
The delegation chanted slogans against the government's decision to raise the price outside the PM's residence.
The memorandum said that the students are expecting a positive response from the PM; otherwise, they would have to resort to struggle and protests against the "unfair decision of the government."
The eight students unions are scheduled to submit a protest letter to the head of NOC and organise a sit-in protest for an hour at the NOC premises.

LEADERS SPLIT OVER HIKE

KATHMANDU: Speakers at an interaction were split on Saturday over the recent rise in price of petroleum products. Addressing an interaction organised by the Media Group Nepal, Eccha Bikram Thapa, spokesperson of the Nepal Oil Corporation (NOC) said the price rise in petroleum had to occur because the Corporation could not keep on buying petroleum products at higher prices and selling them at lower prices.
He said that the Indian Oil Corporation (IOC) was not providing petroleum because the NOC did not have enough money for the purchase. The rise in the price in international crude oil was another factor leading to rise of fuel price here.
NC leader Prakash Sharan Mahat said that the subsidy on petroleum products was only benefiting the well off and it was illogical for the government to continue it.
The government, instead, should find out the vulnerable groups and provide subsidies to them on petroleum products like kerosene and syndication system in the transportation sector should be ended at the earliest to check irrational price hike.
Bishwo Aryal of Nepal Petroleum Dealer's Association said the subsidy of Rs 100 in cooking gas must be discontinud because only five per cent of the total population use LPG.
He also asked why there was a profit margin in kerosene, which is used mostly by the poor.
Senior Maoist leader Dev Gurung said his party has always opposed raising the price of petroleum products. He said that petrol should be imported from China also because this would cost less and also make the market more competitive.
He also accused that there was a conspiracy in Nepal to destroy public enterprises and privatise them.
He further said the King's property could be nationalised to pay for the subsidy in the short term. Surendra Bir Malakar, the president of Nepal Chamber of Commerce said the NOC did not discuss with them about the price hike.
He said Nepal should adopt a two-pronged price system for petroleum -- higher prices for the business sector and lower for the private sector.
Dol Nath Khanal of Nepal Transport Association said the government should either take back the price hike decision or transport costs would rise and also there would be higer percentage of inflation.
Bhim Bahadur Tamang of All Nepal Transport Worker's Union said that the price hike would hurt workers.
BLAME GAME ON

KATHMANDU: Economists, experts and political leaders blamed each other and urged Nepal Oil Corporation (NOC) and government to adopt alternative ways instead of hiking petro prices, speaking at the Reporters' Club here on Saturday.
Dinanath Sharma, a senior Maoists leader, blamed government for lobbying for the petro price hike because, according to him, some of the ministers themselves are involved in petroleum products' business. "The ministers' themselves own petrol pumps, that's why they are lobbying for price hike," he said adding that the rampant corruption in NOC and adulteration must be checked immediately to provide people cheap and smooth supply of petroleum products.
"Nepali institutions have a record of being bankrupt one after another, whereas the staff and management people of the same company get richer and richer day by day," Sharma said citing the example of Sajha Yatayat.
"Unlike price hike in other products, petro price hike pushes market prices up," Sharma said adding that Rs 200 hike in a cylinder of a cooking gas — that costs only Rs 450 to Rs 500 in India — hits the society hard.
Prof Dr Bishwambher Pyakurel, a prominent economist, agreed with Sharma that the price hike in petroleum products hits all other goods. "About 66 per cent of the hard-earned foreign currency by the Nepalis and sent home as remittance is spent in buying Indian Currency (IC), according to till last month's figure," Prof Pyakurel said adding that current account deficit is increasing, which is not a good sign for national economy. "After Nepal adopted free market economy role of private sectors has increased and role of government has decreased, which is obvious but consumers did not get any benefit," he said, "Which is against the free market economy."
Jyoti Baniya, president of Consumers' Forum, on the occasion, blamed the petroleum dealers for cartelling. "Consumers are in the receiving end as there is no Consumers' Right in Nepal. All the players; government, dealers and NOC are cheating consumers," he said adding that government gets tax, dealers get commission and NOC gets administrative cost making the hole in consumers pocket.
However, Dr Prakash Sharan Mahat, former minister said that NOC must be practical and let the market decide prices. "Government cannot give subsidy to 'the comparatively' rich people," he said adding that tax is used for the development activities.
Dr Pusparaj Raj Karnikar, member of National Planning Commission, stressed on the need of administrative reform in NOC and effective inspection of adulteration and administrative reforms both.
Similarly, Shiva Prasad Ghimire, president of Nepal Petroleum Dealers' Association, clarified the way retail prices are calculated and Digamber Jha, managing director of NOC said that NOC is still incurring losses after the price hike.