Energy crisis and long lines at the pump are nothing new to the residents of Nepal, especially those living in the Kathmandu valley. It is so common that people have started to accept it as just another issue they have to deal with. It does not have to be this way-- there is a better way.
Let's think about the cause of this problem. Well, most of the problems related to transportation that the country faces--petrol shortage, pollution, congestion, traffic-- are due to the government's total control of the supply of petroleum products. This, married with the fragile political system, incompetent managers, carefree officials, all contribute to the present state of affairs. It is time to implement new ways of doing business. The perpetual debt that the Nepal Oil Corporation is in should be enough of a reason for us to start thinking about phasing out the government's monopoly in the supply of petroleum products. It is not sustainable for the government to continuously subsidize the cost of petrol. Temporarily raising the price is just "kicking the can down the road." This is not only a bad economic policy but also unfair, unjust, and absurd. Why should the "have nots" go hungry, die of cholera, and not be able to afford education, while the "haves" get government subsidized petrol? It is time to face the music and start thinking about ways to downsize Nepal Oil Corporation. The new lean NOC should only be involved in the supply of kerosene and other essential oil products for basic household activities, however, the supply of all petrol/diesel for commercial and private use should be privatized and taxed--subsidizing a product that creates negative external costs like pollution and congestion is ludicrous.
Let's think about the cause of this problem. Well, most of the problems related to transportation that the country faces--petrol shortage, pollution, congestion, traffic-- are due to the government's total control of the supply of petroleum products. This, married with the fragile political system, incompetent managers, carefree officials, all contribute to the present state of affairs. It is time to implement new ways of doing business. The perpetual debt that the Nepal Oil Corporation is in should be enough of a reason for us to start thinking about phasing out the government's monopoly in the supply of petroleum products. It is not sustainable for the government to continuously subsidize the cost of petrol. Temporarily raising the price is just "kicking the can down the road." This is not only a bad economic policy but also unfair, unjust, and absurd. Why should the "have nots" go hungry, die of cholera, and not be able to afford education, while the "haves" get government subsidized petrol? It is time to face the music and start thinking about ways to downsize Nepal Oil Corporation. The new lean NOC should only be involved in the supply of kerosene and other essential oil products for basic household activities, however, the supply of all petrol/diesel for commercial and private use should be privatized and taxed--subsidizing a product that creates negative external costs like pollution and congestion is ludicrous.
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