Bowing down to the pressure from the business community, the Nepal Oil Corporation (NOC) on December 27, Tuesday nullified the double price sytem imposed on the bulk purchase of diesel and kerosene.

In order to cut down its losses, the state oil monopoly had earlier decided on December 10 to take up the different pricing for the general consumers and the bulk purchasers.

Big hotels, factories and diplomatic missions among others who were buying 3,000 litres fuel at a time were considered bulk purchasers.

The price of diesel was kept unchanged (Rs 76 per litre) for the general consumers and transport sectors, however.

NOC is incurring a loss of Rs. 1.26 billion per month.

Various business organisations including the FNCCI and Confederation of Nepalese Industries (CNI) had opposed the dual pricing system, arguing that it will but promote black-marketing for the NOC has not effective monitoring mechanism.

Update:  NOC to get Rs 1.5 billion

The government on Tuesday decided to provide Rs 1.5 billion to Nepal Oil Corporation. The state oil monopoly on Monday had said it was on the verge of hitting the dead stock, as it failed to import petroleum products for lack of funds. The Cabinet also decided to provide Rs 10 million for the construction of a building for the Federation of Nepali Journalists. It also decided to provide Rs 25,000 each to the families of the victims of cold wave in Tarai districts. It also appointed Chandra Jha as the chairman of Nepal Law Commission and Prachanda Raj Pradhan as its vice-chairman. Meanwhile, the NOC board on Tuesday decided to withdraw its earlier decision of enforcing dual price in diesel and kerosene. “The decision will be effective from Wednesday,” said NOC. Diesel and kerosene will once again be available for Rs 76 per litre for both general and bulk consumers.

Source: The Himalayan Times