Nepal fuel crisis: Going from bad to worse

Know More: Nepal Nepal fuel crisis, Nepal fuel shortage, Nepal oil shoratage

Nepal

is already in huge trouble for fuel shortage. Transporters are now demanding more money as the price of diesel has increased and they have stopped carrying fuel. To raise the transport fair, the transporters went on strike. On the other hand, the student body of

Nepal

has started protesting for 50% discount in transport fare for a week. The transporters strike has seriously affected the lives and activities of the people of

Nepal

. Now, it is going to become worse. The petrol pumps around the country are shutting down in protest against the irregular fuel supply by the Nepal Oil Corporation (NOC). There are only two ways to make the fuel supply normal again- another steep price increase or heavy subsidy from the government to the NOC to clear its outstanding bills to the Indian Oil Corporation.

Kantipur Online reports:

All that the customers can do now is “pray that OPEC increases production” so that global prices will come down and the shortage will be eased, they said.

Petroleum dealers said they were on strike because NOC has not been able to supply them with adequate stocks even after the price increase.

“All refueling stations closed from today after selling the last of their stock,” said Sharad Bhandari, general secretary of the association.

Consumers have been hit by another round of scarcity after a few days of smooth supplies following the price hike.

An NOC official said that their current financial condition would not allow them to purchase fuel from Indian Oil Corporation; chief supplier of fuel to Nepal. In April, NOC received Rs. 500 million from the government and in May, Girija Prasad Koirala declared to give NOC Rs. 1billion to clear its debts. NOC is still incurring losses worth Rs. 1.5 billion each month. NOC has not yet started its negotiation with the petroleum dealers but it went into meeting with the transporters on 23^rd June 2008. Mukunda Prasad Dhungel, spokesperson for NOC, on behalf of the corporation, urged the transporters to resume supplies. Today, the negotiation will also continue. NOC will also start negotiation with the petroleum dealers.

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