After reviewing the news summary, the government, Nepal Oil Corporation, and the Gas Industry Association have claimed there is no shortage of LPG gas in the market and that artificial issues have arisen due to unnecessary hoarding. Commerce Secretary Narayan Prasad Sharma Dawadi announced plans for a major overhaul of the gas distribution system, including the implementation of separate pricing and cylinder policies for domestic and commercial use. Chief District Officer of Kathmandu, Ishwar Raj Paudel, has warned merchants engaging in gas hoarding or conditional sales that they will be prosecuted under the Black Market Act.
September 14, Kathmandu – Despite the public lining up on streets with empty cylinders amid claims of a cooking LPG gas shortage, the government, regulatory bodies, and industry stakeholders have collectively asserted that there is no actual scarcity of gas. The Ministry of Industry, Commerce and Supplies, Kathmandu District Administration Office, Nepal Oil Corporation, and Gas Industry Association held a joint press conference on Friday to present data showing that gas supply in the market has actually exceeded normal levels.
The sudden increase in demand and artificial market tension were attributed to the recent shift from distributing half cylinders (7.1 kg) to full capacity cylinders (14.2 kg) starting June 15, and consumer tendencies to hoard gas unnecessarily. According to ministry figures, 2,781 bullet gas cylinders have been imported from India between July 16 and August 13 alone. Normally, 110,000 cylinders are distributed daily, but over the past 28 days, the average has been 132,000 cylinders per day. On August 12, 134 bullet gases were imported, with over 100 more arriving on the following Friday, the ministry reported. Currently, 58 gas industries operate nationwide with a combined storage capacity of 10,166 tons and a daily filling capacity of 17.5 million cylinders.
Commerce Secretary Narayan Prasad Sharma Dawadi emphasized the government’s full awareness of consumer rights guaranteed under Article 44 of the Constitution. He stressed that there is no real gas shortage and that increased demand is a result of past backlog and public nervousness. He cautioned against labeling the distribution difficulties as a ‘crisis.’ The ministry is undertaking policy reforms to formalize and increase transparency in the distribution system.
“We are in the stage of comprehensive reforms in the gas distribution system. Soon, separate pricing and cylinder policies for domestic and commercial use will be implemented,” Secretary Dawadi said. “Currently, the retail network is highly informal. We will set standards and certification processes for dealers and retailers going forward.”
