Business

Nepal Oil Corporation moves to consolidate LPG sector

By THT Online

Photo: Nepal Photo Library

Key Takeaways:

  • Nepal Oil Corporation has started the process of merging LPG companies
  • LPG industries have been asked to prepare merger plans
  • NOC says the move will simplify sales and distribution
  • Reform is aimed at improving efficiency and consumer interests
KATHMANDU, NOVEMBER 2 Nepal Oil Corporation (NOC) has initiated a process to merge liquefied petroleum gas (LPG) companies operating under different brands, saying the move is aimed at improving distribution efficiency and protecting consumer interests. According to NOC, LPG industries have been instructed to prepare merger plans and begin discussions on consolidation as part of a broader effort to reform the sector. NOC Director Binit Mani Upadhyay said the policy is intended to simplify the sales and distribution system, improve operational efficiency and make LPG supply management more effective. The corporation has formally written to all LPG companies, asking them to develop merger proposals and move ahead with the necessary procedures. While officials have not specified how many companies could ultimately be consolidated, the initiative marks one of the most significant structural reform efforts in Nepal's LPG sector in recent years. NOC believes a streamlined industry structure could help improve supply management and strengthen consumer service, although details of the merger framework are yet to be made public.