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VOL. 27, NO. 20, January 25, 2007 (Magh 11 2064 B.S.)
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PRICEHIKE IN PETROLIUM PRODUCT
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Politics On Oil
As usually, the student wings of ruling seven party alliance call general strikes demanding to withdraw price hike on petroleum products
By A CORESPONDENT
As in the past practices, student wings of ruling party alliance fired the tire at the main corners of Kathmandu valley protesting the decision of the government to hike the prices on petroleum products.
To paralyze the normal life and create the havoc, the agitators smashed the windows of public transports, government vehicles and shut down education institutions including schools and colleges. This resulted in the complete disturbance of normal life on Tuesday and Wednesday.
Price hike in petroleum products always draws political attention. As price hike is an unpopular decision, no political parties looses any chance to denounce decision and gain the mileage through public support.
Last time the government hiked the price during the long government holiday to avoid the agitations. As the price of crude oil continues to steeply rise in the international market crossing US$ 100 mark per barrel, NOC has very few options.
“The considerable price hike of major petroleum products is aimed at the government’s ongoing efforts to aid repayment of IOC dues and fuel shortage in the country;” said spokesman of NOC Ichha Bikram Thapa.
In its bid to bail out a loss making Nepal Oil Corporation (NOC), the government announced a steep price hike in diesel, kerosene and liquefied petroleum gas (LPG) effective from Monday midnight (21 January). The government increased the price of petrol a month ago.
As per the new rate, diesel will now cost Rs.61.30 per liter, kerosene Rs.61.00 a liter and cooking gas Rs. 1,250.00 per cylinder from Rs.1100.00 for Kathmandu valley and hilly area. However, the price for terai belt is lower than hill.
Despite steep hike in the price, the state-run petroleum supply monopoly also stated that it is still incurring a loss of Rs. 230 per cylinder and Rs.6.08 a litter of diesel.
