NOC rations LPG supply, asks commercial users in Kathmandu Valley to arrange own gas

Kathmandu / Sept 2: Nepal Oil Corporation (NOC) has temporarily halted the sale of Liquefied Petroleum Gas (LPG) to hotels, restaurants, industries and other commercial users in the Kathmandu Valley to prioritize household consumers amid concerns over supply disruptions.Nepal economic analysis

The decision comes after last week’s floods damaged the Naubise-Malekhu section of the Prithvi Highway, disrupting the main road link between Kathmandu and the rest of the country. The highway has been damaged at three locations, with the worst damage reported at Krishnabhir, about 23 kilometers from Muglin toward Kathmandu. Authorities have said it could take at least 15 days to restore the road.

Under the new arrangement, large hotels, restaurants and industries in the Valley will no longer be allowed to purchase LPG from gas depots and sellers inside the Valley for commercial use. Instead, they will have to purchase LPG directly from plants outside the Valley and arrange their own transportation to Kathmandu.

Binit Mani Upadhyay, head of the NOC’s Gas Department, said the measure was introduced to ensure that household consumers do not face further shortages.

“Household demand for LPG remains high in the Valley. If commercial establishments continue purchasing large quantities through the same distribution network, it could put additional pressure on supplies for household consumers,” Upadhyay said.

The NOC clarified that commercial establishments have not been barred from using LPG. They will, however, have to make their own arrangements to purchase and transport the fuel from LPG plants outside the Valley, including by arranging their own vehicles.

LPG cylinders brought into the Kathmandu Valley from districts such as Hetauda, Chitwan and Nawalparasi will also not be allowed to be sold to commercial users within the Valley.

The NOC said the measure is intended to increase the availability of LPG for household consumers and ease the difficulties faced by the general public during periods of supply disruption.

The move comes as households in Kathmandu Valley have already been struggling to obtain LPG cylinders for months. Consumers have faced shortages since the NOC shifted its distribution policy from half-filled cylinders to full 14.2-kilogram cylinders, further straining supplies of the cooking fuel.

While the new arrangement is expected to ease pressure on household supplies, it will require hotels, restaurants and industries dependent on LPG to take greater responsibility for securing and transporting their own fuel.