Protests erupt after Nepal fuel price hike
Sat Aug 19, 7:04 AM ET
KATHMANDU (AFP) - Demonstrations erupted in Nepal's capital after the
government hiked fuel prices by as much as 25 percent in a bid to save
state-owned Nepal Oil Corp (NOC) from bankruptcy.
Protesters in Kathmandu burnt tyres, blocked traffic and shouted
slogans demanding the government scrap the price rises. Just east of
the capital truck drivers parked their vehicles in the middle of a
road and blocked it.
The government raised the price of petrol, diesel, kerosene and
cooking gas late Friday to offset the impact of soaring global oil
prices on the NOC, which sells fuel at subsidised prices in the
impoverished kingdom.
"We had to take the harsh decision to save the Nepal Oil Corp from
going bankrupt," Commerce and Industry Minister Hridayesh Tripathi
told AFP.
"The NOC has been suffering losses of 830 million rupees (11.17
million dollars) a month due to international petroleum product
prices," Tripathi said on Saturday. "Even with the increases, it will
still face losses of around 2.9 million dollars a month."
The NOC, which holds a monopoly on the import and distribution of
petroleum products, owes 161.16 million dollars to financial
institutions including 121.12 million dollars to its sole supplier
Indian Oil Corp, he said.
"The price hike was necessary as there was a danger NOC might not be
able to continue oil supplies unless it cleared its dues," he said.
The government hiked petrol prices by 25 percent a litre to 84.28
rupees (1.13 dollars). Kerosene was raised by 23 percent a litre,
diesel by 11 percent and cooking gas by 11 percent per cylinder.
--
"Science is the record of dead religions." -- Oscar Wilde
"There are no absolute certainties in this universe. A man must try to
whip order into a yelping pack of probabilities, and uniform success is
impossible." -- Jack Vance
"Civilization is the interval between Ice Ages." -- Will Durant.
"War is God's way of teaching Americans geography" -- Ambrose Bierce
"Progress is the increasing control of the environment by life.
--Will Durant
Joseph R. Darancette
daranc@NOSPAMverizon.net
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