Nepal should sign a comprehensive deal with China for import of petroleum products: Professor Dahal

Online Khabar
Kathmandu, November 2. The framework agreement reached with China on import of petroleum products to Nepal has offered a glimmer of hope to a country reeling under the Indian blockade.

Professor Dr Madan Kumar Dahal feels the agreement is a right thing to do as it will help end Indian monopoly in Nepal’s oil market.

“It’s time to initiate a process for signing an agreement with China for import of oil from China on a commercial scale,” Dahal told Online Khabar.

Excerpts from the interview with the expert on economy.

Looking back at history, we talked about bringing oil from China on several occasions. What prompted us to bring oil from the North, this time around?

Thanks to the covert Indian blockade, Nepal has been grappling with an undeclared emergency. The country needed an alternative to overcome this crisis. In fact, we should have made efforts to seek an alternative supply line well before the Indian blockade. But the previous government did nothing towards this end. The framework agreement reached with China is a historic and bold move. It needs to be implemented at the earliest.

What challenges do you seen in the enforcement of the deal?

Challenges are galore, but there’s no alternative but to move ahead without losing spirit. The roads up north are in bad shape. But entry of three oil tankers from China has proven that it is indeed possible to bring oil from China. The first priority should be on bringing oil that China has provided as grant at the earliest. The 1,000-ton oil from China carries huge significance for Nepal and Nepalis. Now, there’s a need to sign an agreement with China on commercial scale as the MoU with China (framework agreement) has laid the foundation stone for the same. Based on the MoU, Nepal should sign a comprehensive deal with China for the import of petroleum products, including gas. I ask the government to take an initiative for such a deal. We are busy talking about Chinese oil, while there’s a grave shortage of (cooking) gas. These days, not only in cities, but in villages too people prepare food using gas. In a fortnight or in a month, there may be a shortage of cooking gas. So, priority should also be on importing cooking gas from China.

By signing a framework oil deal with China, Nepal’s merely showing the China card to India, that’s what some people say. They argue that the deal does not mean much. Do you see the possibility of Nepal importing petroleum products in the long run?

Whether we should continue to rely on India for vital supplies or break free and seek alternative supply lines? This is the main question. Rather than using ties with China as the bargaining chip, we should take the same as a lifeline for Nepal. It has now become clear that bringing oil from China is possible. The focus should now be on facilitating a smooth oil import from China.

Quotes:
“In about a month, the country may face a grave shortage of cooking gas. The government should also bring cooking gas from China.”

“The framework deal reached with China has broken Indian monopoly in the Nepali oil market.”

Whether we should continue to rely on India for vital supplies or break free and seek alternative supply lines? This is the main question