Posts Tagged: Nepal oil

Inept Government, Bankrupt Nepal Oil Corporation and Distorted Fuel Market in Nepal

- by Ram C Acharya-

Again, we have seen the usual drama of the last few decades unfolding in Nepal: the government increases fuel prices, the students and political parties’ sister organizations protest, the prime minister meets with them and the increased prices are rolled back. By doing so both the government and the protestors have imposed numerous costs to the country: the continuous drainage of public resources to the bankrupt Nepal Oil Corporation (NOC). The government’s decision to hike prices is yet another testimony of its rent-seeking mentality that chooses to hit not where the problem is but where the politically weak and vulnerable people are. The protestors are also wrong in imposing the status quo, which is so detrimental to the economy.