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๐Ÿ‡ณ๐Ÿ‡ต Nepal /Economy & Trade

Half-filled LPG policy leaves consumers paying more as supply fears ease

From Kathmandu Post · () English

Summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • Nepal is distributing half-filled LPG cylinders, increasing costs for consumers due to higher transport expenses and extra effort.
  • The policy, implemented in March amid fears of global supply shortages due to the West Asia conflict, is now seen as unnecessary by consumers as supply concerns have eased.
  • Consumer advocates argue the continued distribution of half-filled cylinders costs Nepalis millions daily in avoidable transport costs and inconvenience, particularly in remote districts.

Ram Prasad Chaulagain, a tea shop owner in Kathmandu, now buys the equivalent of half a cooking gas cylinder daily. Previously, a full cylinder lasted two days. This shift, mandated by the government since mid-March, forces him to make daily trips to the depot, costing him an extra Rs100 each time.

Each time he transports a cylinder from the depot to his shop, it costs him Rs100. Buying half-filled cylinders has therefore increased his transport expenses by around Rs1,500 a month. Had he been able to purchase full cylinders, he says, he would have saved that amount in delivery charges alone.

โ€” Ram Prasad ChaulagainDescribing the increased costs due to the half-filled LPG cylinder policy.

This increased transport expense amounts to about Rs1,500 monthly for Chaulagain. Consumer advocates echo his concerns, stating that the government's policy of distributing half-filled LPG cylinders is costing consumers across Nepal millions of rupees daily in unnecessary transport expenses. It also demands additional time and effort to collect fuel.

The Nepal Oil Corporation (NOC) introduced the half-cylinder policy on March 13, aiming to prevent panic buying and ensure wider distribution amid fears of global petroleum supply disruptions from the West Asia conflict. While consumers acknowledge the policy helped alleviate shortages at the time, they argue there is no longer justification for its continuation as immediate supply concerns have subsided.

Earlier, a full cylinder cost between Rs2,500 and Rs2,800. Now there is no certainty about either the weight or the price. A half-filled cylinder should cost between Rs1,200 and Rs1,400.

โ€” Man Bahadur RokayaA local schoolteacher commenting on the price and uncertainty of LPG cylinders.

The burden is particularly heavy in hill and mountain districts. In Simkot, Humla, a half-filled cylinder costs Rs1,700 including transport, and in Birendranagar, Karnali Province, it rises to Rs1,730. Manoj Thakur, spokesperson for NOC, stated that discussions are ongoing regarding the return to full cylinders, but it remains uncertain when this will happen. He reiterated that the policy was a measure to manage the gas shortage triggered by the West Asia conflict.

it was still too early to say when consumers would begin receiving full cylinders again, although discussions on the issue were underway.

โ€” Manoj ThakurSpokesperson for Nepal Oil Corporation Limited on the timeline for returning to full cylinders.
DistantNews Editorial

Originally published by Kathmandu Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.