The government is preparing to sell shares of the nearly-bankrupt Nepal Oil Corporation to the public. The move comes as a multi-pronged approach to rescue troubled public enterprises and to pave the way for private involvement in petroleum.
An ordinance has been drafted to involve the private sector in the buying, selling and distribution of petroleum products. Industry, Commerce and Supply Minister Ishwor Pokhrel says the ordinance will soon be made public. Once the ordinance goes into force, the government will start a competitive bidding process to allow the private sector to enter the market. The government is soon handing over the entire LPG business to the private sector. Private businesses are already involved in the distribution of gas. The new provision will allow private companies to import petroleum products as well. Under a new arrangement, the supply ministry has begun to stockpile petroleum products for 15 days.