Nepal faces LPG supply challenges due to limited storage capacity

Nepal's government is grappling with difficulties in maintaining a consistent supply of liquefied petroleum gas (LPG), primarily due to inadequate storage facilities. The Nepal Oil Corporation (NOC) currently possesses no dedicated LPG storage infrastructure, while the combined storage capacity of the nation's 58 private bottling plants is limited to just 10,166 metric tonnes.

These plants have the collective capacity to fill approximately 162,000 cylinders daily, exceeding the average daily sales of around 110,000 cylinders. However, the lack of sufficient storage hinders the ability to manage supply effectively, especially in anticipation of increased demand during the upcoming festive season and winter months. Another significant constraint is the limited number of LPG bullet tankers, with around 700 currently in transit or on standby, disrupting the loading process in India.

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The shortage of storage infrastructure has made it difficult to ensure a stable supply of liquefied petroleum (LP) gas.

Krishna Bahadur Raut, secretary at the Ministry of Industry, Commerce, Labour and Consumer Welfare, acknowledged these challenges during a committee meeting. He emphasized that while LPG supplied for industrial use is sold at cost price, ensuring no losses for the NOC, the overall supply chain is strained. The ministry is actively working on strengthening supply management systems to mitigate potential disruptions and ensure availability.

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the Nepal Oil Corporation has no dedicated LPG storage facility of its own, creating significant challenges in supply management.