Few days ago, I have written about Japan canceling debts of Nepal. However, it could not escape India’s debt. Due to Nepal’s huge debt to Indian Oil Corporation, and loss of Nepal Oil Corporation (NOC), the government of Nepal has decided to increase the price of fuel.
According to the report published in Chron.com, Nepal’s government has decided to raise the price of diesel and cooking oil to cut the loss of the government. The new price of per liter gasoline is increased by 25 percent, diesel fuel by 11 percent, and kerosene by 24 percent. According to Hridesh Tripathi, Minister for Supply, Nepali Oil Corporation (NOC) owes $ 213 million to Indian Oil Corporation (IOC). Nepal Oil Company is a state owned organization that supplies oil at retail price and absorbs the loss. Due to this loss, it is not able to import petroleum anymore. Hence, the government decided to raise the price of the energy products. This rise in fuel price means rise in the price of daily necessities. As Nepal is a hilly region, trucks are the only means of transportation.
Fuel is very important for any country as it runs the vehicles and industries. Nepal is no exception to this either. However, the country’s economic condition is not very good. At this time, this rise in fuel price will create further problem for the people of Nepal. Let’s hope that this price hike does not lead to any political instability.
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