Reduced import raises, LP gas shortage fears

SANGAM PRASAIN

KATHMANDU, DEC 14 -

A number of gas bottling companies are facing a shortage of LP gas as Nepal Oil Corporation (NOC) has been receiving less than half of its quota from Indian Oil Corporation (IOC).

The bottlers said that gas shipments from Haldiya had resumed after a week while imports from Barauni had been slashed by 50 percent.

The Nepal LP Gas Industry Association (NLPGIA), the umbrella organization of

bottlers, said that NOC

had slashed imports by over 40 percent.

“There is little in stock after NOC slashed the regular quota, however, if the corporation does not fulfil the regular quota, a gas shortage is likely to cripple the country soon,” said Suresh Prajapati, general secretary of the NLPGIA.

The association said that although bottlers did not have adequate gas to supply to the market, they were relieved with the recent strike called against the price hike of petroleum products, as the dealers did not supply gas in the market.

According to the association, IOC has started forwarding the price of LP gas fortnightly as per the international price that has compelled NOC to cut imports as the price of gas in the international market was surging everyday and NOC was unable to make payments.

For the last 10 days, bottlers have been getting about 5 bullets (1,250 cylinders) from Barauni. The reduction in imports has forced three bottling companies to shut down, Prajapati said.

Gas sellers said that last month they received only 9,000 tons. The country’s monthly requirement of LP gas is 12,000 to 13,000 tons in the summer while in the winter, demand crosses 18,000 tons. Increased load-shedding has also push up demand in the winter.

“Now, the winter has started and consumption of gas will climb, however, if the issue is not sorted out, the country is likely to face a gas shortage soon,” Prajapati said. Until Oct. 13, gas bottlers have received only 50-55 percent of the regular supply.

However, NOC said that there would be no shortage of gas. “Although, shipments were down slightly in the last month and the first half of this month, the situation is improving,” said NOC spokesperson Mukunda Dhungel.

Dhungel said that trucks are being loaded and imports would ease within three-four days.

Meanwhile, the Gas Dealers Federation Nepal said that they have planned to continue a phase-wise agitation against the price hike on gas. “Our meeting scheduled for Wednesday will decide the next phase of the protest if the government does not heed to the demand to roll back prices,” said president Gyaneshwor Aryal. The dealers did not sell gas on Dec. 12.