Chances of hyperinflation due to upcoming elections and soaring fuel prices

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The price of Petroleum products has reached a new height since Nepal Oil Corporation (NOC) has increased the price of petrol, diesel, and kerosene by Rs. 3 per liter each, effective from Sunday.

The upcoming elections might act to add fuel to the preceding price hikes of the goods in the market. Consumer activists voice that Nepal’s political situation has always affected market prices, with political parties seeking campaign funds as the election approaches. Activists warn that the prices of goods might even go higher if the government gets relaxed monitoring the market.

The government has more things to focus on as the local election approaches, and with the daily consumer goods soaring with inflated prices, it will only create trouble for the government said Madhav Timalsina, president of the Consumer Rights Investigation Forum.

Inflation has crossed the central bank’s tolerance limit of 6.5 percent and is proceeded to cross 7 percent in the first five months of this fiscal year. The price hike in petroleum has made this situation even unbearable.

The finance minister had claimed that the economic situation of the country will improve but the claim seems to go downhill as to contrast minister’s claims the country has faced low-income growths and frequent inflations.

Adding to frequent inflation, the quality of goods is also being overlooked. In the first half of the current fiscal year, the Department of Food Technology and Quality Control has taken action against 11 firms for bad business practices like food adulteration in items like milk, water, tea, edible oils, and lentils. The department has already filed against many Dairy factories in the valley for producing and selling adulterated milk and dairy.

Timalsina says the government’s efforts are turning into rust as the fancy vehicles bought for on-the-spot quality checks of food are unused to do so. The director-general at the Department of Food Technology and Quality Control, Matina Joshi Vaidya oppose this claim saying there are no price hikes due to the election and the department will remain alert to check the market.

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