Petroleum Price Hike Protest and Blame Game Politics

Update (Aug 20): The government has taken back the decidion to hike petroleum price.

Chinese tourist Clover

Lucky to be in Nepal? A Chinese tourist whose English name Clover means lucky poses for camera in Tinkune, Kathmandu as she was walking from Bhaktpur to Kathmandu today after traffic was abruptly halted because of sporadic protests against hike in petroleum prices. On the background could be seen tires set ablaze by protestors. A student of Media and communications in Xiamen University of Fujian, China, Clover came Nepal two weeks ago with her parents. She had been to Bhaktapur in the morning to see the Durbar Square when traffic in the city was normal. “When we tried to return after the sightseeing,” she said while walking on a hot day. “Cabs refused to take us back to Kathmandu.” The family is staying in a hotel in Thamel.

19-year-old Clover said they went to “the beautiful city of Pokhara” and Chitwan where she saw several rhinos. “But I couldn’t boat in Pokhara as it was raining,” she said. “It was an interesting day today,” she said about the protest and the experience of walking while crossing several blockades on the road. She also didn’t forget to share the stories of encountering Maoist cadres on way to Kathmandu from Tibet. “They wanted money from us,” she said. “But our driver said that we couldn’t pay. Then they left us.” Clover and her parents will return to mainland China via Tibet on Sunday. Pic by Wagle

By Dinesh Wagle

Today saw Nepali politics’ one of the naked games of blaming others for unfavorable decisions when Nepali Congress issued a statement saying the government’s decision to hike the price of petroleum products yesterday was against the people. Another member of the ruling Seven Party Alliance, Nepal Worker and Peasants Party has also expressed its unhappiness over the government’s decision to hike the price. CPN UML, second largest partner in the government, is also understood to have blamed the government for the hike. Even the minister who was directly responsible for raising the price, Nepal Sadbhavawana Party (Anandidevi)’s Hrideyesh Tripathi has also reportedly expressed his ignorance about the hike. College students affiliated with CPN UML are on the streets burning tires and vehicles and they are demanding that the must leave the government.

Pokhara Petroleum Price Hike Protest
Protest in Pokhara: Students burnt tires in Pokhara protesting the hike in petroleum product price.

The decision, very painful but necessary, was taken yesterday by the government and now, after seeing the protest, all sides want to run away from the protest target. Protest has become a daily lifestyle of Nepali people. They hit the streets anytime for any reason. We have seen so many protests and agitations in different sectors in the last several weeks: from tea workers to students of vocational institute CTEVT to part time teachers in the Tribhuvan University. Not to mention sporadic protests after drivers in Kathmandu killed two pedestrians intentionally, first hitting and then running over the body by backing the vehicle, in two separate instances.

in Jadibuti

In Jadibuti, Koteshwor

From the economic point of view, the hike in the petro price was inevitable because Nepal doesn’t have oil fields and all petro products are imported from international market. The price has risen internationally and that wasn’t adjusted in the previous regime. Only alternative option would be to launch a massive reform within the state monopoly Nepal Oil Corporation that manages the petroleum sales in the country.

protest in jadibuti

Protesters blocked road in Jadibuti, Koteshwor

The hike on petro price has always very much sensitive issue in Nepal because of its political repercussions. This has always been a political issue, especially in the 90s when opposition always looked for a better issue to protest the government. That was a bad tradition that every other party followed while they were in opposition. We have seen the previous governments buckle down because of the protests and reduce the price. It is bound to happen this time too. But this is not an issue to be kept under carpet for long. Decision must be made. And that is going to be a political decision.

Yes, the extreme decision would be to take back yesterday’s decision of raising the price and reduce the price by as much as 50 percent. That means the state has to subsidize on the petroleum products. But would such decision be sustainable? No. Then what is the option? Should we leave this issue to the election of Constituent Assembly saying that CA would decide on this?!!? I would not be kidding to think like that given the current situation in the country. But the must plausible option would be that all parties should come together and collectively decide. If no one wants to hike the price for the shake of politics, okay, cut the defense or even development budget and subsidize on the petroleum products.


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58 responses to “Petroleum Price Hike Protest and Blame Game Politics”

  1. GM Avatar
    GM

    I knew this was coming. Girija is so stupid. This is why Govt should have worked and pushed harder to work with Maoist, gone to CA, and created a new Govt. He has already lost the momentum of peace process, and few more necessary but unpopular decisions and the King will be back in power. I will guarantee this.

    In Nepal, opposition always have an upper hand. We do not have effective leaders or we do not let promising people to become leaders. The Govt has lack of money and resources and so necessary and unpopular decisions like raising petrol price and loadshedding have to be taken again and again. Then people get riled up. The opposition just need to start the fire and then crowd will do the rest of the job. The Govt will topple and the opposition will be back in power. The cycle will continue until the leaders realize and we have a FAIR ELECTION.

  2. Blogged Avatar
    Blogged

    After this, expect the load shedding and hike in electricity prices. And even more protests and the peoples’ government becomes even more unpopular.

    Which means advantage for the king and the regressive forces in Nepal. I agree with GM that this government, if it wants to avoid the rise of the king and another royal takeover, should go for the election of constituent assembly immediately. Also, go for the referendum with this question: Monarchy in Nepal or Not? My vote, if you want to know in advance, would be a big: NOOOOOOOOOOO.

  3. Bideshi Avatar
    Bideshi

    There can be no referendum or election of any kind with armed rebels in the villages.

  4. buda Avatar
    buda

    well price hike has nothing to do with this government. petrolium price has gone up in international market so price hike was obvious. and in case of electricity there is no enough water to produce electrity so load shading has to be done. I THINK PEOPLE IN MEDIA SHOULD TRY TO TEACH PEOPLE WHY THESE THINGS ARE HAPPENING. NOT EVERYBODY HAS ENOUGH KNOWLEDGE ABOUT EONOMICS OR SCEIENCE. SO I THINK MEDIA SHOULD TAKE IMPORTANT ROLE IN TEACHING WHATS GOING ON.

  5. GM Avatar
    GM

    Bideshi,

    Right, there cannot be referendum or election with armed rebels in villages. However, that does not mean that we stay rigid in our stands and stall the peace process.

    Maoists will not want to disarm. We want them to disarm. If we are to stick to our positions without flexibility, peace process will break, King’s dictatorship will start again. War will break again and more wasted lives. Now do you want this?

    The right thing is to engage in discussions. Bring experts from other conflicts and share their experiences. How did rebels in Cambodia or IRA disarm? We need to keep on talking. Keep on pressuring. Ask the rebels why they want to keep the arms since they got CA election – what they asked for. Why hasn’t any journalist asked this question to Prachanda? Have public debates. We need to find ways to convince Maoists to lay off the arms. Will they be convinced if we restructure Nepal Army and fire most of the generals sympathetic to monarchy. If so, let us do it. We need to find what we are willing to give up and what we will not give up. Bargain hard, work hard, and pressure hard and come to a compromised negotiation.

    However, I do not think Girija thinks the same way we do. So I think we will be back in square one. More protests, more instability, power struggle with the king, low intensity fighting with Maoists, more wasted lives, more destruction, more broken families, and a whole generation of millions of Nepalese growing up in a conflict without education and skills to cope with poverty and the list goes on……

  6. Deepak Luintel, Shanghai Avatar

    what a pity! How can we change mentality of Nepalese people?

  7. mahesh cumar Avatar
    mahesh cumar

    Wagle
    are you reporting on price hike or on a chinese tourist?

    it is true that price hike was a necessary but not due to international price, the reason is SPA wants to raise fund for up coming election. thats what they are doing. this crushing price hike is totally unnecessary and should reduce to its original price. main cause of the loss to the corporation is due to overstaffing of the NOC. reduce the number of employees to half(most of them are party activist anyway) and make the management effiecent and corruption free. may be that will give the solution to the price hike.

    second think, the distribution of state fund to the victims of the janandolan-II, which is totally unnecessary, because they all volonteered in the movement, so did millions. let some social organization or business house do this it for them. reserve the state fund for other purpose. its real shame that these victims tag a price on themself.

    looking at the dialy violence on the street, looting incident and docoits, it seems that we have landed over loot-tantra.

  8. Nepali from UK Avatar

    Wagleji, I hope that you will give more news about following news from Kantipuronline.com.

    What is happening? Who are behind this killing? Is this conspiracy so as to disturb the unification of Nepali Congress?

    I think this is the first time a political leader have been killed after truce between Maoists and SPA.

    Unidentified group kills Dang’s NC-D Chairman

    Kantipur Report

    DANG, Aug 19 – Chairman of the Nepali Congress-Democratic, Dang branch Shreedhar Subedi was killed Saturday, after an unidentified group slit his throat.
    Forty-year-old Subedi, a resident of Choughera-4, Tribhuvan Nagar Municipality, in the district was found dead, lying face down, by a villager under the Katua Khola bridge, this afternoon.

    According to sources, Subedi was last seen leaving his home to go to the market on Friday afternoon.

    In addition to the slit throat, Subedi had been castrated as well.

    Subedi was involved in a raw-hide contract.

  9. Kishor Avatar
    Kishor

    Oil prices rise and fall. Thats the nature of market. In Nepal, there is always a hurry to increase prices citing international markets. But they are always reluctant to decrease the price. The best way to deal with these things is to privatize NOC. After that, we don’t have to bother about staffing, or whatever.

    We don’t want the goernment to provide us free oil, however, the prices should be just all the time. If it increases now, it should have the guts to drcrease it when the international market price goes down.

    And about the protests in streets, everybody wants to be popular. There were days when the NC and UML parties would demonstrate in the streets for oil price hikes. The current demonstrators are not speaking against the price hike, they are speaking for some “hidden” force now. Instead of wasting time that way, we can put it to some productive work – that way our purchasing power goes up. What a pity on us!

  10. D.MICHAEL VANDEVEER Avatar

    This is what the Martyrs gave their life for in the April-Revolution ?

    The mis-leaders headed by GP Koirala WILL NEVER bring PEACE and DEMOCRACY TO NEPAL !

    All they bring is their history of corruption and incompantence….

    On the other-hand the Maoist seem not to have even a notion of what it takes to creat Democracy..

    I am afraid Nepal, sadly,will face an “October Revolution”., much worse than the terrible days in April.

  11. Nepali Avatar

    Who is beind the killing of Chairman of the Nepali Congress-Democratic, Dang, Shreedhar Subedi?
    Let us understand the value of human life.

    We all know violence brings counter violence. Let us give way for peace. Let us not put comments glorifying Violence only.

  12. Concerned Avatar

    ????????, ?????? ???????? ?????????????? ?? ??? ?????? ?? ?????? ?? ????? ???? ??? ???? ?, ????????? ??????? ????? ?? ? ?????? ?????? ????????? ???? ???? ???? ???? ?????? ?? ?? ?????? ? ?????? ??? ???? ????? ???? ?? ? ?? ???? ???? ?? ????????? ????? ???? ???? ????? ?? ????

    ?????? ???????? ?? ???? ??? ????? ????? ???? ?????????? ????? ?????? ??? ???? ??? ???? ? ?????? ?????? ?????

  13. Democracy Avatar
    Democracy

    Mr Binod Bhattarai, Maha Samiti Member (so surely he is a leader) of Nepali Congress (Democratic) had earlier posted some comments here in this website.

    Maybe he can give some insights into what has happened and who is behind this terrible act.

    If government cannot ensure the safety of their own party’s leaders, how can government ensure safety of ordinary citizens?

  14. Kiss Avatar
    Kiss

    sunday 20th August 2006 8:30

    I am here at Sorakhutte from morning 6:30. The students have blocked the roads and have forced not to ply any thing on the roads.
    The students group is shouting anti government slogans

  15. Bideshi Avatar
    Bideshi

    “This is what the Martyrs gave their life for in the April-Revolution ?”

    Mr. Mike, how much do the Maoists pay you to be their shill? The demonstrations played right into the Maoists hands. It is regretable when naive, idealistic people who are pawns in the game are killed and injured. The agitation only furthered the Maoist cause.

  16. Sandesh Avatar
    Sandesh

    Dear All,

    Don’t trust Girija. We had experienced him for almost one and half decade after first Janaandholan. We had miseries instead of happines during his tenure. In recent episode of movement Maoist and seven parties had betrayed Nepali people’s aspiration of Janaandholan 2. It is not yet late but we need to build up again for even bigger revolution or protest to overthrow him and bring a genuine democracy- a democracy which will restructure NA, keep them under people’s control, bring Maoist under peace process, punish all the corrupts ( which includes royals, panches and his coteries)which includes neo-currupts Khume , Govinde and Chire markas.

  17. khp Avatar
    khp

    The price hike could have been done gradually over a period of several months especially for kerosene.
    But, to demand no hike is plain stupid, because it will be the tax payers paying the brunt of the inaction through indirect taxes and more debt, and also the national coffers, the economy will crash and we will have nothing left to protest about. The people on the streets are all rent a mob types, who are the least effected by these hikes.

  18. santosh Avatar
    santosh

    Why blame Girija? The price rise was inevitable unless you want NOC to be bankrupt. This is pure political oppurtunism of CPN UML and Maoists.

  19. khp Avatar
    khp

    Let me add the likes of this crook of a person Tripathi should resign immediately for trying to dodge responsibility over something he is directly in charge of, and should resign from his party and never be given a ticket to run in politics. If these are the same people who talk about responsibility of so many directly and indirectly and not at all related to the janandolan “supresssion”, how the hell can Tripathi claim that he had nothing to do with such decisions under his own DIRECT command?

  20. khp Avatar
    khp

    I also strongly ask extremist elements to not instigate by making comments that unduly agitate uneducated and rougue elements. Fuel prices have to be raised before we swallow ourselves in debt and economic collapse. Trying to make a political issue out of this is not only irresponsible but dangerous, this is why Ministers like Tripathi should be sent to the political wilderness.

  21. pk Avatar
    pk

    Who is calculating the costs of these bandhs and agitations? Who will compensate for that?

  22. kalupandey Avatar
    kalupandey

    All what we are seeing is the result of setting bad examples by our so called great leaders who always fought for SATTA (sorry I should say it was for democracy/loktantra or ganatantra, otherwise they may blame me as PRATIGAMI!). They always used to teach:
    1. How to burn tyre
    2. Hoe to pelt stones
    3. How to damage/burn vehicles
    4. How to use bad words(PANDEGALI) or insult others
    5. How to break railings of the road
    6. How to disrupt traffic

    They did not teach:
    1. How to be civilised
    2. How to work hard for the benefit of self & society
    3. How to study hard in college/schools
    4. How to tolerate others’ views

    Hence, it is true that what seed you plant, the same fruit you will get.

    PLEASE DON’T BE CONFUSED THAT IF MAOISTS COME TO POWER, PETROL WILL BE ANY CHEAPER. BUT THE OPPOSITE WILL BE TRUE. IF THEY COME TO POWER, PRICEHIKE WILL BE EVEN MORE.

  23. mahesh cumar Avatar
    mahesh cumar

    the price hike was painful and totally unnecessary, thus govt withdrawn, thats end of story,

  24. I'llbeback Avatar
    I’llbeback

    King will be back, and this time with the support of the main political parties and the international community. Maybe not as chairman etc., but back with everyones go ahead except of course the extreme leftist elements. The SPAM have’nt been able to sort out their differences, the peace process will fail so there will be no other option but for another emergency and more violence. But it is inevitable with the current situation that the King will be back. Maybe this time the army will take the lead and the initiative while politics will stay on the back burner. If peace cannot be had via negotiations, then I’m afraid the only way will be through more bloodshed, no matter how long it takes. Don’t have illusions, don’t have unbrelistic hopes and assumptions, get prepared for the upcoming reality.

  25. Kirat Avatar
    Kirat

    The retail price per litre of petrol in the US is around 90 cents (NRS 67.50) one of the cheapest in the developed world. The retail price per litre of petrol in the UK is 90 pence or NRS 121. The price per litre in India is around INR 50 (NRS 80).

    Go figure.

  26. agraha Avatar
    agraha

    aba pheri LIMBU bata KIRAT bhais!! cry baby KIRAT!!

    US has no single figure,every pump has its own price.

  27. Kirat Avatar
    Kirat

    I’m talking about average prices, smart alec. They also don’t sell by the litre but by the gallon (so American!) before you decide to make that an issue.

  28. devil_in_mercedes Avatar
    devil_in_mercedes

    here r suitable quotes:

    1) LIKE POLITICAL FATHER LIKE POLITICAL SON

    2) PEOPLE BURNIN TYRES ARE SHORTENING THEIR SURVIVAL.

    3)EDUCATION AND DISCIPLINE IS A MUST. COMPULSORY SHORT-TERM ARMY TRAINING WILL HELP BUILD DISCIPLINE AND RESPECT SENIORS.

    4) PEACEFUL DEMOSTRATIONS CAN BE EFFECTIVE IN SENDING THE MESSAGE INSTEAD OF HOOL-DANGA, BANDA AND ECONOMIC BREAKDOWN.

  29. agraha Avatar
    agraha

    hahahah kirat ur so brilliant,U knew that we get gas as gallons here,god ur even more brilliant than ur mentor baburam bhattarai.

  30. Gravis Avatar
    Gravis

    Kirat,

    Even at record prices, gasoline in the US is relatively cheap. American love affair with the big SUVs and everybody wanting their own vehicle are the main reasons that gas prices are still about half that of its European conterparts.

    Although prices of petroleum products is regulated and subsidized by the government, Nepal cannot sustain to provide petroleum products at the previous price as before for India probably has raised the prices as well and all the petrol and diesel coming into Nepal is refined in India. Nepal doesn’t have any domestic source for petrol either.

    Goverment still needs to provide subsidized kersosene for a whole lot of people depend on it as a fuel source for cooking.

  31. Kirat Avatar
    Kirat

    Gravis, agree with you on subsidizing kerosene for the poor. But there is no way the Nepal Govt. can afford to subsidize other petro products as it is doing now. It will lead to economic ruin.

    The main reason for petrol prices being cheap in the US is because they are not taxed as heavily as in Europe, India or even Nepal.

  32. bayalpata Avatar
    bayalpata

    The price could come down by decreasing tax, making the OIC slim by treaming the excess load of staff, investigating the corrupt practices and making it leak-proof. But who will do this? Girija? Hridayesh? Makune? These hopeless fellow are neither couragious nor capable doing this. Therefore, burning tyres and raising slogans has been an exercise to keep hope alive, though it is fruitless in economic and political sense.

  33. Kirat Avatar
    Kirat

    The answers simple but the politicians are too greedy. De-regulate the industry. Look at the improvements after the Govt. opened up the skies. Nobody needs to rely on the shoddy RNAC anymore.

  34. Susant Sharma Avatar
    Susant Sharma

    where Mr Kirat get GAS price of USA! he is hilarious man.Agerage GAs price is in USA 3 dollars plus I mean, more than dollar per litrs.

  35. Kirat Avatar
    Kirat

    Susant-there are 3.8 litres in a US Gallon. So if you are bright enough do the math. Can I call you stupid?

  36. pawan Avatar
    pawan

    govt took wrong decision, peoples on the street gone mad, and businessman lost one’s business. what the hell is going here man. i feel really sorry for people that 205 proven incompetents are running this country.

  37. Bideshi Avatar
    Bideshi

    ‘King will be back, and this time with the support of the main political parties and the international community. Maybe’

    And then we would be back in the same mess again. We need strong unified leadership to defeat the Maoist rebellion.

  38. GP Avatar
    GP

    compare the price here
    http://www.blogbahadur.com/2006/08/post_10.html
    I donโ€™t know if it is correct or not.

  39. derock Avatar
    derock

    what’s wrong with the government, people are now not like past, they are now awaken, so don’t try to do that upset’s general mass…….

  40. Gravis Avatar
    Gravis

    Sushant,

    Ali ramrari kura bhujera “smart-ass” comment gareko bhaye hunthiyo……
    Kirat is nobody’s fool!:)

    Where do these street protestors get the dough to buy “kerosene” to set the tires afire to protest petroleum products price hike? ๐Ÿ™‚

  41. Susant Sharma Avatar
    Susant Sharma

    Kirat
    In US 3.785 litrs makes a gallon, to be accurate, however, Gas prices varies from state to state. If we take a median of all prices that would be 3.8+.So now you calculate Mr.Einstine, No wonder why to some species Bell Curve(Iq)reaches to the bottom.

    Gravis,

    I really do not need a Chamcha to clarify, if you want to make a point, just make it by yourself. You seem professional Chamchha that if you are not dump enough why not you make point which makes sense.

  42. Kirat Avatar
    Kirat

    Susant-you live in the US? With your atrocious English I am sure your species tops the Bell Curve. You write like a seven year old, mate. Pick up a current business magazine and check the statewide gas prices. But enough no more replying to an idiot like you.

  43. Abhishek Bhattarai Avatar
    Abhishek Bhattarai

    “A simple solution to the problem of price hike of petroleum products is Privatization”. But i don’t think it is a solution. Privatization just for the sake of privatization will never work- we have seen it all in the past.these are so essential commmodities and privatizing just can not be a simple solution, at least till we explore other alternatives seriously and with purpose.
    Before thinking about privatizing we should try to stop the corruption and leakage that are said to occur.

  44. Kirat Avatar
    Kirat

    Privatization is not the answer. De-regulation of the industry is. Let NOC remain a govt. corporation but open up the industry for other companies to buy and sell petroleum products. Just like the domestic airlines industry in Nepal.

  45. D.MICHAEL VANDEVEER Avatar

    Namaste Kirat,
    Who pays the million & millions of Rupies owed to India for Petroleum already consumed by Nepal ?

    Does India, without back payment, need to continue to subsidize every vechile owner in Nepal ?

    This is a question I think has great baring on Nepalese Sovereignty.

  46. Kirat Avatar
    Kirat

    Well Mike, if we want to retain our sovereignity we better keep our payment with the Indians current. That is why the oil prices had to rise. Ofcourse NOC being a corrupt corporation is another problem too.

  47. fanta Avatar
    fanta

    The mistake of the SPA government is making maoist and opponent more stronger; their mistakes are

    1. They were the one who were against the price hike of the past and made tool to mass movment. Now they themselves made decision to incrase the price by 25% (maybe historical hike in the world) which neither can be tolerable to poor people nor can be affordable. And they are blaming to the protesters by saying them as vandalised people.

    2.The SPA government made the decision to increase it by 25% which is Rs. 17 per liter (petrol) and blaming the petrol dealers for behind this reason. Whereas petrol dealers are getting only Rs.2. How come it is logic behind Rs. 2 and Rs. 17 price hike?

    3. The SPA government is telling that there is huge corruption in Oil Corporation. But one thing they should not think Nepali people as dumb. Their own parties candidates are being appointed as the head of Oil corporation, if their own appointees are doing corruption then what they are looking for not sacking them and taking actions. All people know that there is huge bribery in appointing the GM in Oil Corporation, and which is unhidden truth.

    4. The SPA government is telling that Oil Corporation had to pay certain due amount to the Indian government which was not paid by the past government. The people are thinking this as a slogan to incrase the price of petroleum products since many years back.

    5. Another thing has been heard that Indian government’s authorities itself is mixing the other products in petroleum products before delivering to Nepal. Everyone knows about it and mixture is tentatively 15-20% which excludes the local mixers. And, our petroleum products are considered as one of the worst quality in the world. In this case the SPA government is silent because they either aware to talk about it or they might be getting indirect benefits from locals as well.

    6. Isn’t it a great joke that they decicided to incrase the price by 25% and taking back their decision all of certain like children play? What people will expcect from them in future for such kind of decisions? How they are going to adjust the loss which they are claiming? They might be taking this decision as short-sighted.

  48. replytoall Avatar
    replytoall

    hahaha now this is what it is all about. u know what its nobody else but the kings regressive “cronies- as u guys say” who are behind this petroleum price hike and also the vandalizers are the kings supporters. or is it not???

    but the police carrying their usual lathi charge is a progressive force now. its not regressive kings taluwa chatua.

    maoist killed a dude after calling him back home.. that is the kings men too who did that….. blame the king…..

    [icd] now who do u blame…. the king is no more in power…. ????? wait until hell breaks loose in nepal…

  49. Blogged Avatar
    Blogged

    “[icd] now who do u blameโ€ฆ. the king is no more in powerโ€ฆ. ????? wait until hell breaks loose in nepalโ€ฆ”

    Yes, King is no more in power just like Taliban are no more in power in Afghanistan and Saddam and other insurgents no more in power in Iraq. You don’t have to be in power to exploit the transitional stage and destablize the society. Royalists are doing exactly the same be that in the name of religion or other excuses.

  50. Bideshi Avatar
    Bideshi

    You are right blogged but it is the Maoists who are exploiting the situation. Forget SPA and get the Army back into the field.