LPG Imports Steady Amid Renewed Shortages in Nepal

Consumers in Nepal are once again facing liquefied petroleum gas (LPG) shortages, a situation that has emerged less than two weeks after the government allowed the sale of full cylinders. This recurrence has led to consumer complaints and speculation about the causes, with some initially blaming India for reduced supplies.

However, data from the Nepal Oil Corporation (NOC) indicates that LPG imports have not decreased. Nagendra Sah, managing director of the NOC, stated that supply is regular and consumers should be able to obtain gas easily. He explained that demand had fallen during the four months when only half-cylinders were sold. When full-cylinder sales resumed, a surge in demand occurred as all available empty cylinders returned to the market simultaneously, creating the current problem.

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

Government officials, LPG bottlers, and retailers have largely pointed fingers at consumers for stockpiling cylinders, rather than acknowledging distribution problems. The shortages first surfaced in February amid escalating conflict in West Asia, prompting the government to limit LPG sales to half-cylinders from mid-March. Full-cylinder sales were restored on June 15, but shortages have since resurfaced.

Sah acknowledged that consumers with only one cylinder are particularly affected due to limited flexibility during supply shortfalls. The NOC is considering long-term solutions, including identifying distribution points in coordination with industries and adjusting gas distribution based on regional demand. Data shows that imports did dip during the half-cylinder sales period, but have since recovered.

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There were no complaints about not getting gas when we were selling 7.1 kg cylinders for four months. 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.