Kathmandu, April 10

Gas bottling plants have warned the government that supply of cooking gas from India could be halted any time after April 16. They have threatened to take this step if the government does not clear the amount accrued as rental charge and the cost involved while re-routing the liquefied petroleum gas (LPG) bullets during the border blockade within a given deadline.

Organising a press meet today, Nepal LP Gas Industry Association — the umbrella association of bottling plants in the country — said that Indian transporters have been repeatedly asking them to clear the dues on time. “Indian transporters have been repeatedly threatening us to halt supply if dues are not cleared soon,” said Kush Prasad Mally, vice president of the association.

The country is reliant on Indian transporters for the supply of LPG in the country. Altogether 55 bottling plants have leased 450 LPG bullets to ferry cooking gas from India to bottling plants of respective gas bottlers.

According to LP Gas Industry Association, the cost accrued as rental charge of the bullets during the border blockade stands at around Rs 300 million. Similarly, cost involved while re-routing the gas bullets that had been stranded at Raxaul stands at Rs 100 million.

“The government had principally agreed to compensate the cost involved in re-routing the gas bullets during the border blockade but the fund has not been released yet,” said Mally, adding, “Since the government has not released the fund till date, it is difficult for us to deal with the transporters.”

Nepal Oil Corporation (NOC) — the state owned petroleum company — has clarified that it had given approval for re-routing LPG bullets after government expressed commitment to compensate cost of re-routing. However, it has refuted the claim made by the bottlers regarding the rental charge.

“NOC is in touch with the owners of LPG bullets and they have not threatened to halt supply,” a high-level source at NOC said. The source claimed that NOC had spoken to Satish Sharma, Ramesh Batra and Radheshyam Agrawal, owners of the companies that provide bullets for Nepali bottlers.

“We can negotiate with them regarding rental charges because they are aware of the situation during the border blockade and have not warned of halting supply,” the source said, adding, “Bottlers want to create havoc in the market so that buyers start hoarding more cylinders and subsequently they will be able to sell more new cylinders.”

Supply of cooking gas in March exceeded 30,000 tonnes, but the supply situation in the market has yet to normalise. NOC recently increased the import quota from the existing 30,000 tonnes to 37,000 tonnes for three months.

Meanwhile, the gas bottlers have also held talks with the Supply Division Head of the Ministry of Supplies, Uttam Nagila, and urged the ministry to clear the dues to the Indian transporters. In the meeting, Joint Secretary Nagila had asked bottlers to provide information on the number of refilled cylinders supplied to the dealers. Bottlers were also urged not to supply gas directly to the consumers. There have been allegations that gas bottlers are dispatching cooking gas cylinders to the big buyers like star hotels and industries, among others, to cut the cost on dealers’ commission.