Tuesday, 23 July, 2024

NOC proposes tax cut on fuel, two-day weekly public holidays


Kathmandu, Mar. 30: Nepal Oil Corporation (NOC), which has been running in losses because of rising fuel prices, has submitted 10-point suggestions, ranging from reduction of fuel consumption to removal of tax imposed on petroleum products.

Submitting a 10-point proposal to the Ministry of Industry, Commerce and Supplies on Tuesday, the NOC proposed a public holiday on Saturdays and Sundays to reduce the consumption of petroleum products, said Binitmani Upadhyay, spokesperson for the NOC.

The Corporation has been running in losses following hikes in fuel prices triggered by Russian invasion of Ukraine.
The Corporation has sent a 10-point proposal to the Ministry to shield the consumers from the rise in fuel prices and to narrow down the widening trade deficit, he said.
According to the letter sent by the Corporation, it has proposed to implement a strict system in private and government vehicles and two-day public holiday to reduce the consumption of petroleum products.

The Corporation is of the view that the reduction in oil consumption will have a positive impact on the Corporation's deficit and the country's trade deficit as well.
"The situation is becoming critical due to soaring prices.

So, we have to be serious to cut fuel consumption," he told The Rising Nepal. “The government should not delay in taking a prompt decision.”
The country has imported petroleum products worth Rs. 185 billion during the first eight months of the current fiscal year. This is 91.1 per cent higher compared to same period last year. The share of PoL products in total imports stands at 14.1 per cent.

The NOC has demanded that the government reduce the customs duty, value added tax and infrastructure fee imposed on fuel by Rs. 15 per liter.
Similarly, the Corporation has stated that the charge up to Rs. 200 per cylinder of cooking gas should be waived along with fuel tax and the remaining losses should be reconciled through price adjustment based on hikes.

Currently, the NOC has been adjusting fuel prices fortnightly based on the auto pricing system. But the NOC is facing monthly losses of around Rs. 9 billion from the sale of petroleum products.
Now, petrol costs Rs. 155 per litre, diesel and kerosene at Rs. 138 per litre and LPG Rs. 1,575 per cylinder.

To discourage the import of petrol and diesel vehicles, the Corporation has proposed a public call from the government to use electric vehicles and stoves instead of LP gas for cooking.
The NOC has proposed with the government to urge large industries, projects and hotels to increase consumption of electricity instead of using diesel and LP gas.

Besides, the government should call for walking short distances without using vehicles as much as possible, and issue a public notice to utilise full seat capacity in all types of vehicles.
Similarly, the NOC has demanded that the Ministry of Finance make arrangements to provide easy loans from the Employees Provident Fund and Citizens Investment Fund for the easy supply of fuel.