Nepal grants NRs2 billion to NOC for fuel subsidy

In response to intense protests by several student bodies against the fuel shortage and the decision of Nepal Oil Corporation to increase petroleum prices, the Nepalese government decided to give NRs2 billion (US$24.3 million) to Nepal Oil Corporation. The money will be used to subsidize petroleum products. Lekhraj Bhatta, minister for Commerce and Supplies, had initially requested for the release of NRs4.5 billion (US$54.79 million) to ensure the smooth supply of petroleum products in the market. People had to stand in long queues in Kathmandu to purchase oil and liquefied petroleum gas (LPG). In January, the government increased the prices of fuel and LPG by 15%, which sparked nationwide protests. The price was partially rolled back and Prime Minister Baburam Bhattarai promised that the government would take steps to ensure the smooth supply of petroleum products and LPG. “The fuel supply-related problems will now end soon,” Bishnu Prasad Chaudhary, minister of State for Commerce and Supplies said, quoting the Prime Minister. The government said it had also decided to give a 33% discount on petroleum products to students and the poor. (February 2, 2012)