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Government plans to separate household and commercial gas cylinders amidst the ongoing crisis

For years, hotels and industries have quietly filled up on the same subsidized 14.2kg cylinder meant for households. A new seven-member task force has two weeks to design a fix.

Inner Circle Nepal newsroom
Updated 1 min read
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Government plans to separate household and commercial gas cylinders amidst the ongoing crisis

The Ministry of Industry, Commerce and Supplies has formed a seven-member task force to design separate cylinders and pricing for domestic versus commercial cooking gas, aiming to curb black-marketing and stop businesses from using subsidized household cylinders.

The task force coordinated by the ministry's Supply Management and Consumer Interest Protection division, with representatives from Nepal Oil Corporation, the Department of Industry, the Department of Nepal Standards and Metrology, and gas industry associations has 15 days to recommend how to classify cylinders for general (domestic) versus hotel, restaurant and industrial (commercial) use, and how to price each differently.

The problem this targets is years old and costly: Nepal's standard 14.2kg subsidized cylinder meant for family kitchens has long been used interchangeably by five-star hotels, large industries and commercial establishments, forcing the government to absorb a subsidy loss on every cylinder regardless of who actually buys it. This task force is meant to finally draw a line between the two markets.

The Department of Nepal Standards and Metrology has already approved a standard for a large, 450kg commercial cylinder meant for hotel and restaurant use. But it has never been rolled out, because Nepal Oil Corporation has not finalized the sale price and subsidy procedure for commercial gas.

The task force is expected to resolve that gap after it once reports back, officials expect commercial and domestic gas to finally carry different prices and different cylinders, which they say should significantly reduce both market confusion and black-marketing.

After the Krishnabir section collapsed, it cut off LPG deliveries to Kathmandu Valley, forcing Nepal Oil Corporation to prioritize domestic supply while commercial users sourced their own refills. Black-marketing followed as cylinders officially priced at Rs 2,060–2,165 reportedly resold for Rs 2,800–4,000 with some dealers taking advance payment for undelivered stock.

Whether the task force can turn that 15-day mandate into an actual fix will determine if Nepali households finally stop subsidizing someone else's kitchen or hotel.

Filed underEconomy
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