The Department of Commerce, Supplies and Consumers Protection (DoCSCP), Nepal’s market regulator, has raised concerns about the failure of the Nepal Oil Corporation (NOC) to ensure the proper distribution of cooking gas over the past two months.
Although the state-owned NOC claims it has been supplying sufficient amounts of liquefied petroleum gas (LPG) to dealers, many households have been forced to wait in long queues—sometimes for up to a month—to obtain a gas cylinder. NOC, however, attributes the shortage to panic buying by consumers.
In response to the situation, the DoCSCP has asked NOC to submit detailed information regarding the actual demand and supply of LPG, the role of bottling plants, and the reasons behind the ongoing shortage. Narahari Tiwari, director of the DoCSCP, said the department has requested data on the country’s annual LPG demand as well as the monthly breakdown of supply.
Officials at the department are also worried that the shortage could worsen due to rationing measures imposed by Indian authorities in their domestic LPG market amid the ongoing Middle East crisis. Reports suggest that India has tightened LPG distribution to its local consumers.
Tiwari stated that the department has received numerous complaints from the public regarding the lack of cooking gas, and market inspections have confirmed the shortage. The regulator has therefore instructed NOC to develop and present a concrete plan to address the issue.
However, NOC maintains that Nepal’s LPG supply will not be affected by India’s rationing policy. Managing Director Chandika Prasad Bhatta said Nepal continues to receive around 50,000 tonnes of LPG from India every month under a bilateral agreement, and this arrangement remains unchanged.
According to NOC records, Nepal typically requires around 100,000 to 110,000 LPG cylinders daily. Recently, however, demand has increased to about 130,000 cylinders per day as consumers began stockpiling gas during the election period.
Bhatta added that NOC has instructed LPG bottling companies to provide daily updates on gas distribution to depots. Bottlers have also been directed to prioritize household consumers and maintain separate records for sales to households and commercial outlets.
