KATHMANDU, MAY 17
The government has introduced a long-term strategy to gradually phase out subsidies on liquefied petroleum gas (LPG) and promote the use of electric stoves to curb the rising cost of fuel imports.
The Energy Consumption Growth and Export Strategy, 2083, made public by the Ministry of Energy, Water Resources and Irrigation, sets a target to end LPG subsidies by the fiscal year 2092/93. In their place, subsidies will be provided for electric cooking appliances to encourage a shift towards clean energy.
The move comes amid soaring import costs. According to the Department of Customs, Nepal imported cooking gas worth Rs 41.65 billion in the first nine months of the current fiscal year. In the previous fiscal year 2081/82, LPG imports totalled Rs 62.58 billion.
Data from Nepal Oil Corporation show that around 48,000 metric tonnes of LPG are imported monthly, with a loss of Rs 331.25 per cylinder, currently priced at Rs 2,160.
The strategy aims to reduce dependence on imported fuel by boosting domestic electricity consumption, particularly as Nepal's hydropower generation continues to grow. The country's installed hydropower capacity has reached 4,296 megawatts and is expected to rise to 4,500 megawatts by the end of the fiscal year.
Authorities say promoting electric stoves will not only reduce import bills but also support environmental sustainability and public health. The Nepal Electricity Authority has already initiated campaigns to expand electric cooking, alongside efforts to strengthen transmission infrastructure and ensure reliable power supply.
The government has also outlined complementary measures, including promoting electric vehicles, expanding charging infrastructure, replacing coal-based industrial systems with electric alternatives, and offering concessional electricity tariffs for agriculture.
Officials say coordinated efforts among the Ministry of Finance, Ministry of Energy, and other stakeholders will be key to implementing the strategy and achieving its long-term objectives.
(With inputs from RSS)