Government in profit making business, exploiting consumers
The government has inclined the price of petroleum products for the fourth time in a month.
Nepal Oil Corporation (NOC), following a meeting of the corporation's board of directors on Sunday, decided to increase the price of petrol by Rs 21 per liter and diesel/kerosene by Rs 27 per liter. The new price has come into effect from Monday midnight. The price of cooking LP gas has remained the same.
The government has imposed different taxes on petroleum products, therefore, the price has skyrocketed. The government could control the price of petroleum products by removing different taxes on it but it is organizing a daylight loot by inclining the price of the petroleum products, which has affected the entire economy. If removed all taxes, petroleum prices would come down to 120 rupees per liter. The petroleum price is directed related to the transportation sector, which will affect the market price of the essential commodities. Moreover, as the price of all items will incline along with the price hike on petroleum products, the price of the construction materials has skyrocketed, from which, the entire infrastructural sector has been affected adversely. All the construction companies have already announced a construction holiday.
The price of petroleum products in Nepal is highest compared to the price in the South Asian countries. Even in India, the price is cheaper than in Nepal. Until yesterday, the government was saying that due to the higher price in India, Nepal was unable to reduce the price of the petroleum products considering the possibility of smuggling them to India from Nepal. Controlling the smuggling trade is the government business. Even though, today, when the price of petroleum products is lower in India than the price in Nepal, the government has remained silent.
In fact, the present corrupt government is in a move for collecting election funds by initiating policy corruption. The recent change in the customs tariff through the budget is a move to make the commission, which is open to us.
Moreover, as the government needs funds for managing the general sector expenditure since we adopted the federal structure, it is intended to squeeze consumers. Such a trend is going to collapse the economy soon.
Victim of wrong policy: Until the 1990 political change, Nepal was importing crude oil from the international market by enjoying the subsidy given to the less developed nations by the OPEC nations. Still, OPEC is providing such facilities to the LDCs.
The government formed after the 1990 political change, by ending the practice of importing crude oil, started to procure all petroleum products from the Indian Oil Corporation. The government has inked an agreement by giving a monopoly to the IOC. As per the agreement, Nepal cannot procure petroleum products from any other country.
Today, India is procuring oil from Russia at a discounted price but the latter is selling oil to Nepal according to the international market price, which is very high than the price offered by Russia. China is also importing oil from Russia. Nepal too has excellent diplomatic relations with Russia and it could enjoy such a facility. Unfortunately, Nepal has lost this opportunity.
How the India pleasing policy has economically ruined Nepal, could be a burning example.