Gas Cylinder Hoarding: Factory Fined NPR 300,000 for Stockpiling Over 6,000 LPG Cylinders Amid Shortage

Kathmandu. On Monday, during an inspection by the Department of Commerce, Supply and Consumer Protection, over 6,000 gas cylinders were found hidden in the warehouse of Shri Ram Gas Industry located in Harisiddhi, Lalitpur. In the midst of a cooking gas shortage in the market, Shri Ram Gas Industry Pvt. Ltd., which hoarded a large quantity of cylinders, was fined NPR 300,000 as punitive action.

The department, while raiding the industry's warehouse in Harisiddhi, Lalitpur Metropolitan City-28 on Chaitra 2, discovered 6,377 gas cylinders weighing 14.2 kg each. The department stated that the industry was immediately fined under Section 39 of the Consumer Protection Act, 2075, for the offense of creating an artificial shortage of goods and hoarding, as per Section 16 of the same Act.

The department has directed that these over 6,000 gas cylinders be immediately sent to the market under the coordination and supervision of the Nepal Oil Corporation (NOC). However, discussions are ongoing regarding whether these gas cylinders will be sold as 'full' (14.2 kg) or distributed after being converted to 'half' (7.1 kg) according to the current special arrangement.

Nepal Oil Corporation Spokesperson Manoj Thakur informed that discussions are underway regarding the distribution modality of the seized gas. "The Department of Commerce has completed the necessary action; now discussions are ongoing on how to sell and distribute those cylinders," said Spokesperson Thakur. "We will inform once a concrete decision is made on whether to sell the full cylinder or distribute it after making it half."

Given the current high demand for gas, the department has urged all gas producers and distributors not to create an artificial shortage that would affect supply.