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Nepal: Massive hike in prices of diesel, kerosene, LPG
Kantipur Report
KATHMANDU – The government Monday considerably hiked the prices of diesel, kerosene and the cooking gas as part of its ongoing efforts to aid repayment of dues to the Indian oil supplier in order to end the festering fuel shortage in the country.
…The state-run Nepal Oil Corporation has stated that it will still incur a loss worth Rs 230 in per cylinder of LPG and Rs 6 and 8 paisa in diesel despite the latest price hike, notwithstanding hike in the price of petrol in December last year (for the second time in less than two months).
…A sharp rise in import prices and the government’s slow action towards addressing oil losses have been contributing to fuel shortage, especially diesel over the recent days.
NOC has also admitted that the corporation was presently distributing some 700 kiloliters of diesel a day, which is some 300 kiloliters less than the normal daily demand.
NOC officials, however, had been arguing that with industries switching to diesel for their energy requirements because of the six-hour-long daily load shedding, the corporation had been put under added pressure at a time when it didn’t have enough money even to pay for its regular imports.
Worse, if the government does not make immediate arrangements for funds, as it has pledged to do by issuing Oil Bonds, the crisis will only deepen, according to the NOC officials.
The NOC’s recent report forwarded to the Supplies Ministry stated that the Indian Oil Corporation (IOC) has sharply cut oil shipments as the state-owned petroleum monopoly failed to make full payments of the past two installments through its own resources.
(21 January 2008)
Nepal students burn tyres to protest fuel hike
Reuters
Hundreds of students burned tyres and brought traffic to a halt on the roads of Nepal’s capital on Tuesday in protest against a steep hike in the price of cooking gas and diesel.
The Nepal Oil Corporation, the state-owned monopoly, raised prices of diesel, kerosene and cooking gas on Monday by up to 20 percent to cut losses. It was the second rise in three months.
Protesting students said poor people would suffer because of the hike.
(22 January 2008)
High gas prices: Recession-proof
Steve Hargreaves, CNNMoney
Americans may see falling stock markets and employment rates, but worldwide demand and OPEC should keep the heat on oil and gas prices.
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Contrary to popular belief, Americans facing a looming recession should expect little relief in the form of lower gas prices, experts say.
Despite recently falling oil and gasoline prices, strong worldwide demand, refinery shortages, and OPEC production cuts should keep gasoline well above $2 a gallon in 2008.
Slower consumer spending and rising unemployment – traditional harbingers of an economic downturn – are unlikely to drastically reduce energy prices. Oil isn’t expected to fall below $60 a barrel from its current level of $90 and gasoline should bottom out around $2.30-2.50 a gallon from around $3 currently, experts say.
(22 January 2008)
