State oil monopoly promoting criminalisation, blame gas dealers

Gas traders have blamed the Nepal Oil Corporation (NOC) for promoting criminalisation in the state oil monopoly.

"The NOC must leave the Liquefied Petroleum Gas (LPG) to the private sector," said president of Federation of LPG Dealers Gyaneshwor Aryal, here speaking at an interaction, today.

As the state oil monopoly is highly criminalised, the government has to adjust the price of LPG – popularly known as cooking gas – and ensure smooth to the consumers, he said, adding that they are ready to take over the cooking gas business, if the government bears the loss of NOC.

The business of cooking gas and its pricing is a serious issue currently, said the officiating executive director of the NOC Jayaraj Acharya, on the occasion.

Currently, there is no scarcity of the cooking gas and the price hike is also not in pipeline, he added. "The NOC has income of Rs 1.30 billion, whereas the loss stands at Rs 1.35 billion."

A cylinder of cooking gas comes to Rs 2,238 at the latest price but the NOC is selling it at Rs 1,470 incurring the losses, Acharya said, adding that the state oil monopoly is ready to handover the cooking gas business to the private sector immediately, if it can handle it.

If the government has will power, the cooking gas losses could be made up as the NOC is incurring some Rs 2 billion loss also due to government's inefficiency, according to the cooking gas dealers.

Likewise, other gas dealers, on the occasion, also claimed that the private sector is ready to take over the cooking gas business of the government brings a policy.