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Gas dealers warn LPG shortage is worsening, demand end to direct industry sales

The Gas Vendors' Federation asked the Nepal Oil Corporation on October 6 to stop gas industries selling directly to consumers and return to the dealer-based system.

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Gas dealers warn LPG shortage is worsening, demand end to direct industry sales
Photograph: Internet

The Gas Vendors' Federation Nepal has warned that the cooking-gas shortage is getting worse. It has asked the Nepal Oil Corporation (NOC) to stop gas industries from selling LPG directly to consumers.

The federation says distribution should go back through authorized dealers. It handed a memorandum to NOC Managing Director Nagendra Sah on October 6, 2026.

Federation president Gyaneshwar Aryal said consumers are still having trouble getting cylinders. The federation says the present system is causing confusion and making it harder for people to find gas.

The memorandum makes these demands:

  • An immediate end to retail sales by LPG industries
  • A return to distribution through authorized dealers
  • Better management of the existing 14.2-kg cylinders
  • An investigation into the real causes of the shortage
  • Talks among the NOC, industries, dealers and other groups

The federation says there are already more cylinders in circulation than Nepal needs, but many are not being properly collected and managed. It also claims some gas industries are selling new cylinders for Rs 2,500 to Rs 2,700 each. These are the federation's allegations, and they have not been confirmed independently. The NOC's website lists the official price of a 14.2-kg refill at Rs 2,060.

The federation also objects to industry plans to bring in more cylinder sizes, such as 5 kg, 19 kg, 50 kg and 450 kg. It says the priority should be managing the cylinders that already exist.

Nepal has faced LPG problems all year. After supply disruptions in March, the NOC handed out half-filled 7.1-kg cylinders. Full 14.2-kg cylinders returned on July 15. Demand rose because people had held off buying during the rationing. In late August and September, floods and road damage in key supply routes made the problem worse in Kathmandu. The government has again looked at separating household and commercial gas distribution.

The NOC has said before that imports have been enough. In July, it said about 110 LPG tankers were entering from India daily, compared with a normal 90 to 95. It blamed much of the pressure on higher demand. The reports suggest no single cause, and the problem seems to come from demand, cylinder management, distribution and transport delays together.

Consumers have reported long queues and visits to several dealers to find a cylinder. More families are turning to electric cooking. Customs data reported earlier shows Nepal imported 19,508 induction stoves worth Rs 43.78 million in the first two months of this fiscal year.

The NOC has not yet responded to the memorandum. The main question is whether it will change the distribution system and improve the supply of household cylinders.

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