Tuesday, December 2, 2008

Dry day ahead of third cut in fuel prices in as many months

Some petrol pumps in the Valley were dry today, albeit deliberately. The reason, though, isn’t hard to seek. The pump owners didn’t replenish their quota, thanks to the ‘open secret’ that petrol prices will be slashed tomorrow.
Saroj Pandey, president, Nepal Petroleum Dealers' Association (NPDA), admitted the dealers’ reluctance. “Prices will be cut tomorrow. But there isn’t any crisis as other pumps were selling petrol. Nepal Oil Corporation (NOC) also didn’t lift petrol from Raxual yesterday and today," he said.
The sole-petroleum supplier has started reviewing the prices from last month. As per the practice, NOC receives the price list from its benefactor Indian Oil Corporation (IOC) on the second and 16th of every month. The cut comes in the wake of new IOC list, which NOC received yesterday. The authorities would review the prices on the basis of the list they receive on second of every month.
Minister for Commerce and Supplies Rajendra Mahato also made a grand announcement on Sunday that fuel prices would go down from Wednesday.
However, NOC officials should have reviewed the price on the same day it receives the list from the IOC. There is always a possibility of a ‘dry day’ — when the price either goes up or down depending on the global cues — every month.
"This problem may not arise from January. We will understand the repercussion by then,” said Pandey.
NOC has reduced petrol prices twice in as many months. Petrol has been slashed to Rs 90 per litre and diesel to Rs 65 per litre.
NOC board will meet at 12 noon tomorrow to decide on the exact figure. According to sources, some senior NOC officials are against the price review, citing delay in transport fare cut.
As per the new price list, NOC stands to lose Rs 61 for each cooking gas (LPG) cylinder. But it will up with other petroleum products. It will make a tidy profit of Rs 27 for each litre of petrol, Rs 47 for Air Turbine Fuel, Rs 8 for diesel and Rs 9 for kerosene

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