Entrepreneurs of cooking gas, also known as liquefied petroleum gas (LPG), have ended their protest after the government agreed to increase their overhead expenses. The decision comes as a relief to consumers in Nepal, who rely heavily on cooking gas, following widespread criticism over supply disruptions.
After a four-hour-long discussion with the government on Tuesday, LPG bottlers accepted a hike of Rs 12.75 per cylinder in their overhead expenses. The Nepal LP Gas Association (NLPGA) signed a five-point agreement with the government, ensuring a smooth distribution of LPG.
The breakthrough was reached in talks between NLPGA representatives and a government team led by Govinda Bahadur Karki, Secretary at the Ministry of Industry, Commerce, and Supplies.
For the past three weeks, LPG industrialists had been protesting to pressure the government into meeting their demands. They had artificially created shortages of cooking gas, causing inconvenience to consumers. Prior to Tuesday’s negotiations, the bottlers had stopped collecting purchase delivery orders (PDOs) from Nepal Oil Corporation (NOC) since Sunday. Their primary demand was a commission increase of Rs 50 per cylinder from the NOC.
Despite recommendations from a study by experts at Tribhuvan University and Kathmandu University suggesting a commission increase of only Rs 12 per cylinder, LPG entrepreneurs initially refused to comply.
Chandika Prasad Bhatta, Managing Director of NOC, stated that the corporation would bear the increased financial burden, leading to a loss of Rs 342.75 per cylinder.
The discussions also concluded with an agreement for NOC to conduct further studies on additional demands from LPG bottlers, including revising commission rates for LPG industries and gas depots. Meanwhile, all bottlers have agreed to resume obtaining PDOs from NOC regularly to ensure a steady supply of cooking gas.
LPG bottling plants currently distribute three million cylinders per month, with around 12,000 gas depots selling cooking gas across Nepal. Approximately 40% of total LPG imports are consumed within the Kathmandu Valley.
