LPG Gas Industry Association Chairman Highlights Industry Hardships Due to Government's Half-Cylinder Policy

Kathmandu. Chairman of the Nepal LP Gas Industry Association, Dewan Chand, has stated that gas industrialists are in trouble due to the government's policy of half-cylinders (7.1 kg) and the lack of interest in managing related expenses.

Speaking at a meeting of the Industry, Commerce, and Labour and Consumer Interest Protection Committees under the House of Representatives on Wednesday, Chand expressed such grievances.

Chand recalled that on February 28, when there was a shortage of gas in the market, the 7.1 kg cylinder was sent to the market with the agreement of the ministry and Nepal Oil Corporation to provide relief to consumers and prevent hoarding. At that time, there was a written agreement to make this arrangement for only 15 days and then adjust the expenses after studying the costs. However, he clarified that the government has not taken any initiative in this regard even after four months have passed.

Clarifying the problem in transportation, Chand said that trucks that previously carried 2,500 cylinders now have to carry 5,000 cylinders with the same capacity, and the increase in diesel prices has further increased the costs. He stated that transportation to remote hilly districts is very difficult, and the supply of gas is further challenged by road blockades due to the monsoon.

Speaking at the meeting, Chairman Chand said, 'Our operating costs, handling charges, and transportation costs have doubled when filling and transporting half-cylinder gas.' He added, 'As per the agreement, it was decided to implement it from the 16th day after studying the costs, but even after four months, no one has listened to our request.' He said that due to the government's lack of promptness in solving the problem, industrialists are at a loss, sellers are distressed, and consumers are the most affected.

Chand informed that although a decision has been made to bring the 14.2 kg full cylinder back to the market, it will still take about a month and a half for the market to fully normalize. According to him, it will take time to replace the 7.1 kg cylinders and manage the rotation. He said that during this period, the demand for gas may increase by 20 to 25 percent, and coordination is underway with the Oil Corporation to manage the supply accordingly.

He expressed his objection, stating that the government has remained silent despite repeated written and verbal appeals. Chand admitted that although industrialists have sufficient gas stock, the lack of transportation means and geographical difficulties have led to shortages in some places. He also demanded that the government immediately conduct a cost study and address the problems of the industrialists.