KATHMANDU: Distribution of LPG gas resumed last evening after Gas Dealers’ Federation of Nepal (GDFN) and Nepal Oil Corporation (NOC) agreed to postpone the conversion structure to a Public Private Partnership (PPP) with only 10 per cent government share. GDFN president Gyaneswhor Aryal said NOC has agreed to import 17,000 metric tonnes of LPG and the PPP module has been postponed for a year.

He also said that in Nepal Tourism Year 2011 there

will be a demand for 19,000 metric tonnes of cooking gas. The distribution of

LPG had remained disrupted for six days.

According to Aryal, the Ministry of Commerce and Supplies (MoCS) has urged the Finance Ministry to remove VAT on LPG. “Exemption of Rs 116 VAT per cylinder will provide relief to both the NOC and the consumers,” he said.

Total demand for LPG is 45,000 cylinders per day but only 6000 cylinders per day are being imported. The total demand for gas cylinders has increased by 25 per cent compared to the same period last year. Total demand for LPG was 12,000 tonnes last year but now it has increased to 15,000 tonnes.