Shortage of Nepal Gas in market sparks consumer complaints

Kathmandu, January 20 — Recently, there has been a shortage of Nepal Gas in the market.

Consumers have been complaining about the prolonged scarcity of gas from the company.

Manoj Thakur, the spokesperson for Nepal Oil Corporation, stated that no complaints regarding the gas shortage had been received by the corporation. However, he acknowledged that the increase in demand during the winter season could lead to a shortage due to insufficient transportation to meet the demand.

"We have not received any complaints about a gas shortage. There might be a shortage due to transportation issues in some places," said Thakur. "Gas consumption increases during the winter season compared to other times of the year. As transportation is limited, it might not always reach in time, but there is no issue significant enough to create an overall shortage."

However, Shiva Ghimire, president of the LP Gas Industry Association, disagrees, stating that the transportation issue is not the primary cause of the shortage.

"The main issue is the quota, not transportation," said Ghimire. "Even with enough transportation, if the refinery doesn’t have stock, where will the gas come from? The corporation needs to increase the quota based on cylinder capacity, but that hasn't been done. The refinery issues have led to a gas shortage in the market."

The corporation has mentioned that gas is being imported daily from refineries in India, including Barauni, Paradeep, Durgapur, and Karnal, with an average of 80 to 112 bullet shipments.

'Quota Determination is the Problem'

According to Ghimire, the industry has a system where the annual increase in cylinder distribution for each industry is based on a third of the total increase. However, the corporation has not determined the quota for the past three years, he says.

"Previously, we had 1.25 million cylinders. Now, if the number of cylinders increases to 1.5 million, it’s not enough to meet the demand," Ghimire said. "By not determining the cylinder-based quota, the corporation has created this issue."

The Nepali gas industry imports from five out of six refineries in India. However, Ghimire pointed out that maintenance issues at some refineries have caused delays, and sometimes gas cannot be loaded for transportation.

Recently, gas consumption has been increasing, and in winter, it rises by about 30% compared to the summer season. Ghimire explained that issues at various refineries have hindered proper distribution.

There are 59 gas industries across the country, with 26 of them, including those in the Kathmandu Valley and Kavre district, distributing LP gas. Some major players like Nepal Gas and Everest Gas have significant market shares. Ghimire noted that these companies have faced problems in gas supply.

Currently, Ghimire stated that there is not enough gas available to meet the demand nationwide.