Friday, August 26, 2011

Diesel price hike to fuel inflation

Nepal Oil Corporation (NOC) hiked kerosene and diesel price today citing loss but consumers fear that the price hike in diesel before the festivals is going to hike the price of essential goods too.
The state oil monopoly has hiked Rs 1.5 to Rs 75 per liter in kerosene and diesel. “Decision to hike kerosene and diesel price is irrational as the prices have been falling in the international market," said general secretary of Forum for Protection of Consumer Rights Nepal Jyoti Baniya.
According to him, consumer groups have taken the irrational action of the government as a ‘gift to people’ before festive season.
"Price hike in diesel will play a key role in price hike of consumer goods rising inflation to two-digit,” he said, adding that the government should reverse the decision to give relief to people in the festive season.
Another consumer activist, Prem Lal Maharjan criticised the government for adding ‘extra burden to the poor. "Kerosene is the source of energy for the poor," he said, adding that price hike in kerosene will affect poor section of the society.
According to him, the government has hiked the price when the international price of petroleum is at $76 per barrel. "Why the NOC did not hike price when the price was $126 in June," he asked. "It is ill intention of the government to suppress poor."
After the price hike, one liter diesel and kerosene will now cost Rs 75 per litre. "It will reduce NOC's loss to Rs 505.3 million from current Rs 583.8 million," said spokesperson of the state entity Mukunda Dhungel. "We are still incurring Rs 7.58 loss in a liter of diesel."

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