Money
Gas shortages reported after Nepal Oil resumes sale of full cylinders
Nepal Oil Corporation blames temporary demand surge on the switch back to full 14.2 kg cylinders, while consumer rights activists accuse dealers of creating artificial shortages and overcharging customers.Krishana Prasain
Chandrakala Paudel, a homemaker from Imadol, is worried. She has been unable to get a cooking gas cylinder and has been relying on a half-filled 7.1 kg cylinder that is about to run out.
"I have another empty cooking gas cylinder at home. I have been trying to get it refilled for the past few weeks, without success," she said. "I am really worried."
Pradeep Mahara, a bachelor's student from Kirtipur, spent an entire day on Wednesday searching for a cooking gas cylinder.
"I searched from morning to evening at every local grocery shop. Some stores were even asking for extra money to provide a cylinder," Mahara said.
"The local grocery shops said there was a shortage. They even asked for an extra Rs400," he said.
After spending the entire day searching, he eventually managed to buy a cylinder at the official price.
Like Paudel and Mahara, consumers across Nepal are struggling to obtain cooking gas cylinders despite the Nepal Oil Corporation (NOC) and the liquefied petroleum gas (LPG) industry insisting that supplies are normal.
Manoj Kumar Thakur, deputy director of the NOC, said that since the market has switched back to full 14.2 kg cylinders, retailers may be hoarding them while selling the remaining stock of half-filled cylinders.
"There is no problem on the supply side," he said.
The corporation resumed the distribution of full 14.2 kg cylinders on July 15. Earlier, on March 13, it had decided to distribute 7.1 kg cylinders after long queues formed at gas depots because local grocery stores were unable to supply cooking gas across the Kathmandu valley amid panic buying.
According to the state-owned oil monopoly, Nepal's monthly consumption of cooking gas is around 45,000 tonnes. However, the corporation received only 38,000 tonnes from mid-March to mid-April, 32,000 tonnes from mid-April to mid-May, 33,000 tonnes from mid-May to mid-June, and 44,544 tonnes from mid-June to mid-July.
From July 17 to July 30, another 24,000 tonnes of LPG entered the market.
"When 7.1 kg cylinders were being distributed, monthly consumption was around 32,000 to 33,000 tonnes. Now, even 45,000 tonnes is not enough after the return to 14.2 kg cylinders. This shows there is unnecessary hoarding," Thakur said.
"Cooking gas is being supplied by LPG companies and dealers, but it is being sold immediately."
He said many consumers had postponed refilling their cylinders while the 7.1 kg distribution system was in place. Once the corporation announced the resumption of 14.2 kg cylinders, a large number of empty cylinders entered the market simultaneously, sharply increasing demand.
"Once consumers receive 14.2 kg cylinders, the supply situation will return to normal. It may take a week to 10 days for the market to stabilise," Thakur said.
Industry Minister Gauri Kumari Yadav on Tuesday said current LPG supply and stocks are sufficient, adding that panic buying has put pressure on the supply chain. The ministry warned that action would be taken against anyone found creating artificial shortages or engaging in black marketing.
The corporation said the Department of Commerce, Supplies and Consumer Protection has begun market inspections, while the Kathmandu District Administration Office also started inspections on Friday. The inspections are expected to identify why consumers continue to struggle to obtain cylinders despite claims of adequate supply.
The price of a cooking gas cylinder had risen by 13 percent to Rs2,160 before declining to Rs2,060 following a fall in global fuel prices.
While the Nepal Oil Corporation expects the situation to improve within seven to 10 days, the LPG industry says it may take longer for supplies to normalise.
"During the parliamentary committee meeting held on July 15 with the industry minister, the secretary and officials from the corporation, we informed them that it would take time for supplies to normalise after shifting from 7.1 kg to 14.2 kg cylinders, even if supplies from the Indian Oil Corporation continue at the current level," said Diwan Bahadur Chand, president of the Nepal LP Gas Industry Association.
"The impact of distributing half-filled cylinders for the past four months will continue to affect supplies for some time," he said. "We need more LPG than under normal circumstances to stabilise supplies for consumers."
Chand also said the LPG industry had incurred losses because of the government's decision to distribute half-filled cylinders.
According to the association, more than 100 LPG bullets enter Nepal through southern border points every day. Each LPG bullet can fill about 1,250 cylinders, meaning around 120,000 cooking gas cylinders are currently being supplied to the market daily.
Consumer rights activists, however, allege that dealers are creating an artificial shortage to exploit consumers.
"Shopkeepers are creating an artificial shortage of cooking gas. Such shortages force consumers to pay extra to obtain cylinders," said Bishnu Prasad Timilsina, general secretary of the Forum for Protection of Consumer Rights-Nepal.
"Creating an artificial shortage of an essential commodity like cooking gas is a crime, and the government should take strict action against anyone found responsible if it truly stands with consumers," he said, adding that ensuring an uninterrupted supply of essential goods is the government's responsibility.




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