Ministry of supplies demands Rs 11 billion to reduce price of petroleum

Kathmandu, March 20

The Ministry of Supplies has sought Rs 11 billion in subsidies from the government to reduce the price of petroleum products imported from India.

Nepal Oil Corporation cannot reduce the price of oil without a hand-out from the government, ministry secretary Prem Kumar Rai told Parliament’s Industry, Commerce and Consumer affairs committee after it pressed the government to slash prices.

At the committee’s meeting on Monday, secretary Rai said the government should scrap road maintenance tax, infrastructure tax and pollution tax, all of which accrue to around Rs 11 billion for the NOC to cut prices. He added that the Ministry of Finance’s recent decision not to waive customs on petroleum also does not helo the cause.

The ministry has also reminded that the Ministry of Finance says petroleum products should not be cheaper in Nepal compared to south of the border.

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