Nepal fuel crisis hits normal life across country. 25'April'2011

EVEN as the fuel shortage is beginning to take a toll on normal life across the country, the government and Nepal Oil Corporation (NOC) have failed to agree on a plan to address the root cause of the recurring problem. The Ministry of Finance (MoF) on Monday refused to release additional money to NOC to finance its import of petroleum products. NOC has been asking the government to either allow it to revise the price in line with the international market or provide a temporary subsidy until the international market price sees a recovery. The NOC has even asked the government to waive taxes imposed on petroleum products for a limited period. But, MoF has ruled out further subsidies or tax waivers. 

                                                                           
The government is unwilling to allow readjustment of fuel prices to reflect the international market price fearing a political backlash. “Prime Minister Jhala Nath Khanal is not in favor of a hike until the constitution drafting deadline ends,” Prakash Jwala, Chief Political Advisor to the PM said. “To address the ongoing fuel crisis, we will discuss and find a way out.” No discussion has been scheduled yet to address the issue. Though the situation demands quick decisive action on the part of the government, it appears to be dithering and aggravating a manageable crisis. Meanwhile, the fuel shortage has adversely affected normal life in Tarai districts. With the NOC’s regional dealers curtailing supply by half, the crisis has crippled different Tarai districts.
http://epaper.ekantipur.com/ktpost/epaperhome.aspx?issue=2642011