Announcing a major step towards liberalising petroleum trade, on the day when the government hiked up fuel prices, the authorities here issued guidelines for allowing the private sector to import and sell petroleum products in the country.
"Interested private companies can import fuel from any part of the world and sell at their own prices," said Nepal Oil Corporation (NOC) chairman Purushottam Ojha, adding that the quality of the products would, however, be monitored by the government.
He said the government will come out with "detailed modalities in this connection" soon.
The government yesterday announced a steep hike in petroleum prices to cope with the soaring prices in the international market.
The NOC has recorded huge monthly losses as the fuel products in Nepal is highly subsidised and the impoverished nation has no oil reserves and relies on its giant southern neighbour India for all its supplies.
However, as the domestic rates are much lower than in the global market, officials do not expect the private sector to jump into the fuel business instantly.
