Nepal | June 03, 2020

NOC’s plan to start LPG business to end private sector’s control

Himalayan News Service
Share Now:

Kathmandu, April 25

At a time when domestic liquefied petroleum gas (LPG) bottlers often resort to halting the supply of gas to pressurise the government to address their demands, the recent decision of Nepal Oil Corporation (NOC)’s board to set up its own bottling plants, one each in every province, is expected to curb the monopoly of the private sector in LPG trade.

The private sector enjoys almost 90 per cent stake in the country’s LPG market. Though government-owned Salt Trading Corporation is involved in LPG trading, its failure to expand its LPG business effectively has made the private sector the major player in Nepal’s LPG business and any interruption from the private sector in LPG trade has been affecting gas supply across the country.

However, the NOC board last week decided to set up its own LPG bottling plants in all the seven provinces. If NOC is able to materialise this plan, it will prevent the market from facing acute shortage of LPG even if private gas bottlers try halting the supply.

There are 53 LPG bottling plants in the country.

“It was necessary for NOC to set up its own LPG bottling plants as the private bottlers frequently started halting supply of gas putting forth various demands,” said Sushil Bhattarai, deputy managing director of NOC.

In a recent development, NOC was compelled to increase the commission for gas bottlers and distributors bowing to their threat to halt gas supply if the commission was not raised. Time and again, private bottlers have refrained from collecting the purchase delivery order from NOC, which is a crucial document for bottlers to collect gas from Indian oil refineries.

NOC has increased the commission for LPG bottlers and distributors by Rs 27.88 per cylinder to Rs 37.47 per cylinder effective from today itself.

Bhattarai informed that NOC has already finalised the land acquisition process in Province 1, 2 and 3 for the development of gas bottling plants.

The corporation has purchased necessary land for the purpose in Jhapa of Province 1, Dhanusha of Province 2 and Hetauda of Province 3.

“A separate committee will finalise the land acquisition process in the four remaining provinces soon,” added Bhattarai.

NOC has said that these gas plants across all provinces will produce up to 30,000 LPG cylinders per day.

Currently, the domestic market demands around 100,000 LPG cylinders every day.

Operating its own gas bottling plants will also help NOC to trace the real production cost of gas and ease the scientific price fixation process of cooking gas.


A version of this article appears in print on April 26, 2019 of The Himalayan Times.


Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

Tropical storm kills 17 in El Salvador and Guatemala

SAN SALVADOR: Rains from Tropical Storm Amanda left at least 17 dead and seven missing while causing extensive damage across El Salvador and Guatemala that pushed thousands of people into shelters amid the coronavirus pandemic. EL Salvador Interior Minister Mario Durán said Monday some 7,000 peo Read More...

Is pedestrian and cycle-friendly mobility possible post-lockdown? 

Kathmandu   Cycling to his place of work, Dr Paban Sharma, Professor at Patan Academy of Health Sciences, has had to face the brunt of the police officials on more than one occasion. Ever since the nationwide lockdown was imposed on March 24, Sharma’s preferred means of commute has been h Read More...

Nepal Airlines Corporation, Airbus, aircraft, Tribhuvan International Airport, Kathmandu, Toulouse, France

Nepal Airlines operated 22 chartered flights during lockdown

Kathmandu, June 2 Although the government had restricted operations of domestic and international flights in the wake of nationwide lockdown, the national flag carrier, Nepal Airlines Corporation (NAC), has been conducting chartered flights under special conditions. According to the Corporation, a Read More...

Preparing schools for a changing digital landscape

In the last two decades, the world has witnessed a dramatic shift in both its educational and technical landscapes. Nepal has attempted to follow suit. I grew up in a middle class family in south eastern Nepal. We did not have a computer at home, let alone a cell phone. My family used a dial up p Read More...

Coronavirus cases in Karnali Province jump to 252 with 54 new infections

KATHMANDU: Fifty-four additional people have tested positive for the coronavirus infection in Karnali Province, on Tuesday. As of today, five districts of the province have witnessed cases of COVID-19. With the newly confirmed infections, number of cases has reached 252 in the province. Until Read More...

In Pictures: Masks On, Game On

Local youths playing cricket to spend time during lockdown with their mask on for safety in Kshetrapati, Kathmandu, on Tuesday, June 2, 2020. Photo: Balkrishna Thapa Chhetri/ THT Read More...

Worldwide coronavirus cases cross 6.29 million, death toll nears 375,000

At least 6,290,684 people have been reported infected with the novel coronavirus globally and 374,933 have died, a Reuters tally shows. Infections have been reported in more than 210 countries and territories since the first cases were identified in China in December 2019. Meanwhile, US he Read More...

FIFA asks leagues to use "common sense" over Floyd protests

BERN: World soccer's governing body FIFA has asked competition organisers to use "common sense" with players who display messages of protest over the death of George Floyd, an unarmed black man killed in police custody in the United States. FIFA regulations bar players from displaying any "po Read More...