Aam Janata Party Chair Prabhu Sah Demands Removal of Unnecessary Fuel Taxes

Kathmandu. Aam Janata Party (AJP) Chairman and former minister Prabhu Sah has demanded that the government remove the unnecessary taxes imposed on petroleum products. He stated that if the government eliminates these excessive levies, consumers could access fuel at more affordable prices.

Speaking to journalists at the AJP central office in Koteshwor, Kathmandu, Chairman Sah noted that the practice of purchasing petrol at 149 rupees per liter and selling it at 219 rupees is placing a heavy burden of inflation on the public.

'The government is buying one liter of petrol at 149 rupees and 17 paisa, which is the average tax-free price received from the IOC according to the international market, and selling it to consumers for 219 rupees. Why must it be sold for 219 rupees by including various taxes and service charges? If the government removes these unnecessary taxes, consumers can easily and conveniently get petrol at a cheaper rate,' said AJP Chairman Sah.

On the one liter of petrol purchased by the Nepal Oil Corporation for 149 rupees, the government has added 51 rupees and 51 paisa in customs and declaration fees/taxes, road maintenance fees, pollution taxes, infrastructure taxes, green taxes, value-added taxes, and price stabilization fund fees. Additionally, 2 rupees and 27 paisa is added to the purchase price for the corporation's administrative and sales expenses, insurance, and other costs. The corporation is selling it at 219 rupees after further adding transportation costs, petroleum dealer expenses, and profit margins.

AJP Chairman Sah stated that if the corporation removed all taxes and only added transportation, dealer expenses, and profit to the purchase price, consumers could receive petrol for 163 rupees per liter. He emphasized that the government must stop the practice of buying at a cheap price and selling to consumers at an expensive rate by imposing unnecessary taxes and fees.

Currently, petrol is available in the Indian state of Bihar for 170 Nepali rupees per liter. However, the Nepal Oil Corporation is selling the same petrol purchased from India at a higher price in Nepal by imposing various taxes and fees. AJP Chairman Sah has demanded that the government remove these unnecessary taxes on diesel, kerosene, and other petroleum products to provide relief to consumers.