-  Saturday 24 October 2020

Nepal withdraws fuel price hike after protests

 -  Economic Times

Kathmandu, Jan 24 2008 -  Nepal's interim government on Wednesday rolled back the price hike in petroleum products and cooking gas in face of intensified protests that had shut down the capital.

Nepal Minister for Industry and Supplies Shyam Sundar Gupta said that the government has decided to withdraw the recent 20 percent price hike in diesel, kerosene and cooking gas with the approval of Seven Party Alliance.

The government has already instructed the state-run Nepal Oil Corporation (NOC) to withdraw the price hike, Gupta said. The minister said the government will look for alternative sources to make up the loss after the withdrawal of price hike.

Nationwide protests were held for the last two days after the government announced the price hike which was effective from Monday mid-night.

The protests organized by various youth and student organisations in Kathmandu today turned into victory rallies shortly after the news of the withdrawal of price hike spread in the capital. The agitators have withdrawn their future transport strikes.

Landlocked Nepal has no oil reserves of its own and relies on its giant southern neighbour India to truck in petrol, gas and other fuel. But supplies have been tightened after the impoverished Himalayan country failed to pay its bills.

Consumers in Nepal have scampered for fuel supplies in the past several months after IOC cut supplies for failing to make payments.

The state-run NOC, which is facing huge losses due to deep subsidy provided to the consumer, had hiked the price of petroleum products two days ago to make up the losses.

Source : Economic Times

Other articles by reporter Economic Times

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