SANGAM PRASAIN
KATHMANDU, MAR 23 -
The consumption of Liquefied Petroleum Gas (LPG) increased by 16.29 percent in the first eight months of the current fiscal year as against the corresponding period the last fiscal year.
According to Nepal Oil Corporation (NOC) statistics, the country imported 100,557 tonnes of LPG in the first eight months of the current fiscal year as against 86,455 tonnes during the same period the last fiscal year.
NOC statistics show that LPG consumption has increased eight-fold over the last 14 years. The period between 1995-1996 is regarded as the first time when there was excessive demand for LPG when LPG was formally introduced as an alternative to kerosene in urban and semi urban areas.
The NOC statistics show that LPG consumption started rising after 2007-2008 when import surged by almost 20 percent. Nepal imported 115,813 tonnes of LPG in 2007-08 as against 96,837 tonnes the preceding year. In 2008-09, LPG import increased by 21 percent to touch at 141,171 tonnes.
Gas bottling companies say the reason behind the sharp surge in LPG import is that more households are using LPG as cooking fuel. The energy crisis has also prompted people to rely on LPG. According to the bottling companies, changing lifestyle of the urban population is the main cause behind the increased import of LPG. The rising energy crisis has also reduced the use of electronic appliances.
Bottlers say consumers’ penchant for holding on to more LPG cylinders than required has also contributed to the rise in import. With the supply of LPG erratic at times due to price hike, consumers have been found clinging to more cylinders than what they actually require. “Even the import of 17,000 tonnes of LPG per month would not meet the country’s demand,” said Suresh Prajapati, general secretary of the Nepal LP Gas Industry Association (NLPGIA).
The growing demand for LPG saw new players entering the LPG bottling business. Currently, there are three dozen LPG bottling companies in Nepal.
With India recently agreeing to allow Nepal to import LPG from other countries, private players say it would help to cater the growing demand. Nepal and India had reached an agreement during the recent Nepal-India Trade Talk in this regard.
Import of LPG by Nepal Oil Corporation
Fiscal Year LPG Import
1995-96 18,600
1996-97 21,824
1997-98 22,961
1998-99 25,019
1999-00 30,627
2000-01 40,102
2001-02 48,757
2002-03 56,097
2003-04 66,142
2004-05 77,594
2005-06 81,005
2006-07 93,562
2007-08 96,837
2008-09 115,813
2009-10 141,171
