Consumers have begun complaining of LPG shortages in the market less than two weeks after the government restored full-cylinder sales. Some have blamed India for cutting supplies, stating that lower imports caused shortages. However, data from the Nepal Oil Corporation indicate that LPG imports have not decreased. The latest shortages appear to stem from problems managing distribution within Nepal rather than a disruption in supply.

Government officials, LPG bottlers and retailers, however, have largely blamed consumers for stockpiling cylinders rather than pointing to distribution problems.

The shortages first emerged in February, when conflict escalated in West Asia. The government responded by limiting LPG sales to half a cylinder from the second week of March. On June 15, the Nepal Oil Corporation restored full-cylinder sales. Shortages have resurfaced since then.

In February-March, when tensions in West Asia began to disrupt the LPG market, Nepal sold 51,192 tonnes of gas. By August 8, it had already imported 41,294 tonnes, said Nagendra Sah, managing director of the Nepal Oil Corporation.

“Supply is regular, and there is no problem,” Sah said. “Consumers should be able to get gas easily within a few days.”

He said demand had fallen during the four months when only 7.1 kg cylinders were being sold, but surged after full cylinders were restored.

“There were no complaints about not getting gas when we were selling 7.1 kg cylinders for four months,” he said. “But once we announced that full cylinders would be available, all the empty cylinders came back into the market at once, and that created the problem.”

Shh acknowledged that consumers who own only one cylinder have been particularly affected because they have little flexibility when supplies run short.

With LPG shortages recurring, the corporation is also discussing longer-term solutions, he said.

“We are identifying distribution points in coordination with industries,” Sah said. “We may send gas to one area today and another tomorrow, depending on demand. If demand is high in a particular area, we can send more there.”

Corporation data also show that imports fell during the period when half-cylinder sales were in place.

Citing supply disruptions caused by the US-Israel-Iran conflict, the corporation decided on March 13 to sell LPG in half-sized, 7.1 kg quantities. It sold 38,800 tonnes in the period between March 15 and April 14, 32,056 tonnes during April 15 and May 14 and 33,842 tonnes during May 15 and June 14, according to corporation data. Sales rose to 44,544 tonnes during June 15 and July 14.

After determining that there would be no disruption to supplies from India, the corporation decided on July 15 to resume sales of the standard 14.2 kg cylinder.

In the same months of fiscal year 2024/25, Nepal imported 48,327 tonnes in the period between March 15 and April 14, 46,503 tonnes during April 15 and May 14, 49,816 tonnes during May 15 and June 14, and 47,933 tonnes during June 15 and July 14.

Sah said the recurring shortages were also linked to the large number of LPG cylinders circulating in the market.

Whenever shortages occur, he said, the Nepal Oil Corporation and LPG retailers have found that the sheer number of cylinders in circulation creates additional pressure on the distribution system.

A cylinder verification exercise carried out by the corporation in 2021 found 14.4 million LPG cylinders across the country. Industry representatives and retailers, however, estimate that around 17.5 million cylinders are now in the market.

There is no clear policy governing how many cylinders households or commercial establishments, such as hotels and restaurants, may keep, nor is there any system determining how many cylinders should be released into the market each year.

Sah said pressure on LPG sales has now been steadily easing.

“Pressure at Teku has already fallen. We used to sell as many as 2,000 cylinders a day there. Now it has dropped to around 800 or 900,” he said.

The corporation is also pursuing longer-term measures to prevent repeated shortages, including an LPG pipeline and plans to reduce the number of LPG industries in the country from 58 to fewer than 30, Sah said.