May 26: The private sector has demanded the government to reduce the high rate of tax that the government has been levying on the import of petroleum products.

The Birgunj Chamber of Commerce and Industry made such demand via a press statement on Wednesday. The statement issued by the association's president Subodh Kumar Gupta states that the prices have gone up due to the high tax imposed by the government and requested to provide relief to consumers by lowering the tax.

The association made such demand calling the price hike nonsensical after the government increased the price of diesel and petrol by Rs 20 per liter in seven days. Even the price of cooking gas has been increased by Rs 200 per cylinder and is currently being sold for Rs 1,800 to the general public.

The statement also demands lowering the heavy burden put on the people by reducing the tax of Rs 10 per liter on petroleum products imposed in the name of construction of Budhigandaki Hydropower Project for the past few years besides reduction in the customs duty on petroleum products.

Meanwhile, the chamber has also drawn the attention to the protest organized by transporters demanding an increase in freight charge in proportion to the increase in fuel prices. The chamber has appealed to the truck dealers to resolve the issue through discussion rather than strike and protests on such a sensitive issue.