Lawmakers urge to bring Petroleum Act

Lawmakers asked the government to bring the Petroleum Act immediately to also address the current petroleum price hike.

Participating in the discussion of a special proposal registered by the opposition chief whip Bishal Bhattarai, general secretary of the Nepali Congress (NC) and lawmaker Gagan Thapa requested the government to bring the Petroleum Act immediately in the current session of the House to make the fuel business transparent. Suggesting the government to make a petrol, diesel and LP gas free country within 10 years, he said that the government has reduced price of petrol and diesel by Rs 10 per liter but it is not enough. “People should be given relief by further reducing the petroleum price,” he said, asking the government to reduce the taxes levied on petroleum products.

The government monopoly Nepal Oil Corporation (NOC) imports and distributes the fuel worth billions without the Petroleum Act, which has helped people doubt on the transparency. The government entities consume more than half the imports, and is suspected leakage on supply. The consumer rights activists have been long asking the government to bring the Petroleum Act to monitor and regulate the billion-rupee petroleum business. However, neither the incumbent government nor the past governments have any interest in bringing the Act.

Registering the special proposal at the House of Representatives today, CPN-UML chief whip Bishal Bhattarai, urged the government to reduce the prices of petroleum products. UML lawmakers also demanded a parliamentary probe committee to study the price increment of petroleum products.

UML lawmaker Yagya Raj Sunuwar also said that the public is suffering due to the hike in fuel prices. Suspecting the decision to hike prices of petroleum products of corruption, he asked it to be investigated by the parliamentary committee. He said that prices of petroleum products were hiked twice in a week contrary to the procedure laid down by the government.

Likewise, other lawmakers and members of UML demanded the government to further lower the prices of petroleum products in the domestic market.

The hike in petroleum prices will push the inflation up as fuel is the most important factor in price hike in the market. According to the central bank, the inflation has been recorded at 7.3 per cent in the nine months of the current fiscal year. The government – in its fiscal policy for the current fiscal year – and central bank – in its Monetary Policy for the current fiscal year, had targetted to keep the inflation under 6.5 per cent. But both the government and central bank failed to crack the whip on rising inflation also due to rising petroleum prices. The petroleum prices have been increasing in the world due to supply disruption and Russia-Ukraine war that seems to end no time sooner.