Mahato drops hints of fuel price hike

At a time when consumers are reeling under acute and recurring shortage of fuel, a minister has said that the government is preparing to hike the price of fuel.

Addressing a press meet in Birgunj, Friday morning, Minister for Industry, Commerce and Supplies Rajendra Mahato said that the government has reached the conclusion that the price hike is necessary.

Mahato said the government should not fear from taking a rationale decision to adjust the prices of petroleum products. Referring to huge losses, Mahato said price hike was necessary to ensure smooth supply as well.

The state-owned Nepal Oil Corporation (NOC) has been urging the government to hike the price of petroleum products to match with its increase in the international market. Neck-deep in debts, NOC has been unable to ensure smooth supply of fuel as it often fails to clear dues with the sole-supplier Indian Oil Corporation (IOC).

Earlier, the government had said that it would not hike the fuel price at least till the election of Constituent Assembly as it feared that regressive elements could exploit public sentiment to fan unrest. Last year, too, the government had been forced to roll back the decision to hike the fuel price following unrest across the country.

Meanwhile, at the press meet, Mahato said that pro-palace elements were trying to split Nepal Sadbhavana Party (NSP-Anandidevi). Mahato-led faction is holding special convention of the party in Birgunj. nepalnews.com sd Sep 14 07

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