Call to withdraw LPG regulation

Kathmandu, March 16:

The Liquefied Petroleum Gas (LPG) Industry Association Nepal has demanded that the LP Gas Regulation 2065 be revoked.

The regulation was brought by Nepal Oil Corporation (NOC) for the proper management and smooth supply of LPG. The gas entrepreneurs, however, voiced their objection to the NOC regulation.

“NOC cannot bring regulations for the LP gas industry arbitrarily,” said a gas industrialist during a press meet organised by the LPG Industry Association Nepal here today. The association has given NOC a three-day ultimatum to withdraw the regulation.

According to the association, if NOC fails to withdraw the regulation by March 18, association members will launch protest programmes and stop Product Delivery Order (PDO), customs work and distribution of gas.”

The association accused the NOC of trying to convert Gas industries into gas dealers. “We could have supported the regulation but our suggestions were not sought,” association president Sabarmal Agrawal said.

According to the regulation, gas industries have to deposit Rs 50,000, fulfill the Nepal Quality Standards before LPG distribution to the consumers while gas filling can only be done after proper examination of gas cylinders and certificate of approval from government-identified units. The gas cylinder used for refilling the cylinders should clearly bear the name of the cylinder manufacturer and logo, gas filling industry name and logo, hydro static test, working or test pressure, weight of cylinder without gas, capacity of water, weight of gas being filled in the cylinder, and cylinder testing date.

The regulation also mentions a rule regarding gas cylinder valve used in the cylinder. According to the rule, the valve used in the cylinder should be according to the Nepal Quality Standards. Gas industries should refill cylinders of their company and the gas industry with PDO should provide full information about customers to the NOC every year during the month of Shrawan (July/August).

“If any industry has to bring a new cylinder in the market, the related industry should forward prior information to NOC and in case the industry is going to shut down or if the customer wants to switch to a gas cylinder of another company, that previous industry or dealer should return the deposit amount to the customer,” the regulation says.

It further states that NOC can at any time issue PDO with some service charge to the industries and the industries according to the PDO should themselves import and transport the gas to their industry.

NOC has focused on the distribution of approved gas cylinders and gas cylinders for household use must weigh 14.2 kg while cylinders for business purposes should weigh 19.2 kg.

NOC can halt supply of gas if industries do not meet the standards, if they fail to collect minimum quota of gas, if there is illegal import of gas from other gas industries or if there is any market distribution of defective LPG cylinders.