Nepal economy can no longer subsidize fuel

Even as Nepal Oil Corp. (NOC) struggles to ensure a steady supply of petroleum products seeking government subsidy in the process, Prime Minister Baburam Bhattarai admitted that the economy can no longer afford to subsidize fuel. “The government cannot provide subsidy on imported products,” he said. “We must reach a national consensus on the matter,” Bhattarai added. According to Bhattarai, the government is looking at the possibility of introducing a legal framework that will enforce energy emergency measures until the time the country can produce 2,500 MWs of electricity. He emphasized that foreign investors will not come until the power crises is addressed. The Immediate Action Plan (IAP) was released in late January and highlights the government’s priorities, and among them is promoting foreign investments and ensuring their security. (January 28, 2012)