NOC to provide subsidy for domestic use of LP gas

Kathmandu, February 3 — Nepal Oil Corporation (NOC) is preparing to sell LP gas at the market price for both commercial and domestic purposes.

While gas for both purposes will be sold at the market price, the Corporation is planning to provide subsidies for gas used for domestic purposes.

NOC spokesperson Manoj Thakur mentioned that the Corporation is developing a software system to provide subsidies for gas used for domestic purposes.

To offer subsidies, NOC is collaborating with the Rastriya Banijya Bank, and the software is being developed to facilitate the subsidy process for domestic users.

Thakur further explained that the discussions with the bank have resulted in a decision to provide subsidies based on the number of cylinders a family consumes annually. This will be managed through the new software system.

Currently, NOC is selling gas at a loss of NPR 322 per cylinder. However, with the market price adjustment, the loss of NPR 322 per cylinder will be added to the selling price.

Presently, NOC sells a 14.2 kg cylinder at NPR 1910, but with the added loss, the new selling price will be NPR 2232 per cylinder.

Thakur emphasized that while it is acceptable to sell gas at a loss for domestic use, it is not appropriate to do so for commercial purposes.

He mentioned that selling gas at the market price for commercial users has caused losses for the Corporation, and this will be rectified by offering gas at the market price to all users while providing subsidies for domestic consumers.

The subsidy for domestic users will be directly transferred to their accounts, covering the loss incurred by NOC.