Nepal Oil Corporation has increased the price of diesel by NPR 30 per liter, releasing a new price list that sets the diesel price at NPR 237 per liter. A significant price disparity between Nepal and India in petroleum products has raised concerns about fuel smuggling and illegal trade. Consumer rights activists have accused the government of raising prices despite offering a 50 percent tax exemption without spending NPR 20-22 billion from the Price Stabilization Fund. Kathmandu, April 4 — On September 30, 2080 BS (effective from September 31), Nepal Oil Corporation issued a new price schedule. According to this decision, petrol was increased by NPR 2 per liter, diesel and kerosene by NPR 6 per liter, and cooking LPG by NPR 215 per cylinder, bringing the LPG price to NPR 2,110. Aviation fuel prices also rose by NPR 8 per liter. At that time, the government was led by Pushpa Kamal Dahal ‘Prachanda’. The Oil Corporation claimed the price hike was due to increased costs from Indian Oil Corporation (IOC) and was adjusted according to the ‘automatic pricing mechanism.’ However, widespread opposition forced the government to retract the increase.
In the House of Representatives meeting on October 14, 2080 BS, National Independent Party (RASWA) chairman Ravi Lamichhane strongly opposed the petroleum price hike and questioned both the government and Oil Corporation. ‘The Oil Corporation engages in trade, imports, and regulation all by itself; it also distributes bonuses to employees,’ Lamichhane stated. ‘Yet, it claims constant losses. What exactly are these losses? If the automatic system bases prices on increases in the international market, then why doesn’t it reduce prices when international prices fall? Why does it take two to three days to lower prices?’ At that time, Lamichhane vocally resisted the petroleum price rise and questioned the corporation. Now, under Lamichhane’s leadership, RASWA holds nearly two-thirds of the majority in the government, with senior RASWA leader Balendra Shah serving as Prime Minister. Since the formation of the RASWA government, petroleum prices have been raised five times. Despite tense conditions in West Asia pushing international prices upward, and India increasing prices accordingly, Lamichhane has remained silent during this recent large price hike over the past month. Moreover, no other RASWA parliamentarians have publicly addressed the issue. While Lamichhane was in opposition, he was vocal about common citizens’ concerns; however, now as part of the government, he has been criticized for not providing relief and instead imposing successive price hikes that burden the public further.
