Encouraging Assurance
MINISTER for Commerce, Industry and Supplies
Ram Krishna Tamrakar observed the other day that if the international market shows a
downward trend in the prices of POL products, the government will also bring their prices
down. Speaking at an interaction programme, Minister Tamrakar further elucidated that the
government was compelled to take such a tough decision due to the increase in the prices
of POL products in the international market. The Nepal Oil Corporation (NOC), the sole
authority to import and distribute POL products in the country, increased the prices of
POL products last week by citing, among others, the rising trend in the prices of POL
products in the global market. Certainly, in the present era of rapid globalisation, an
increase in the prices of any product in the international market will also affect the
internal prices of the same product in any country. And Nepal cannot remain unaffected
because Nepal also has to purchase the POL products from the same international market. At
present, the government is undoubtedly in an unenviable situation for two main reasons.
First, it is definitely not in position to decrease the prices of POL products. For, to
continue supplying them at the previous prices would entail a gigantic loss to the
national exchequer--which, in turn, will surely affect the nation’s development plan
and budget. Secondly, since the country is devoid of any oil fields, the government,
especially the NOC, has to rely solely on imports of POL products from abroad. This means
having to meet the increasing demand for fuel at home amidst a fluctuating price situation
of POL products in the international market.
Due to these two unpalatable reasons, it is
but natural for the government as well as the political parties to be serious from their
respective sides about the adverse effects of price hikes of POL products on the people
and national development endeavours. Herein, what is indeed heartening to note is that the
Central Working Committee (CWC) of the ruling Nepali Congress party decided the other day
to instruct the government to increase the amount of kerosene to be distributed to the
people under the coupon system. The increase will surely be welcomed by the people,
especially by those who need kerosene the most. Yet, considering the fluctuating price
situation of POL products in the international market, it looks to reason on the part of
the government and related agencies to speedily harness alternative energy sources--such
as the nation’s vast water and solar resources--to meet the rising demand for fuel in
the country.
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