Kathmandu, December 13:

Nepal Oil Corporation is planning to introduce separate Liquified Petroleum Gas (LPG) cylinders for commercial and domestic use as part of strategy to implement a dual price system that it has been planning of late.

Commercial users will have to buy 19-kilo cylinders at the market determined price while the 14-kilo cylinders, currently in use all over Nepal, will continue to be subsidised for the household consumption, according to Managing Director of the Corporation Digambar Jha.

“We are currently doing the necessary homework for implementation of the new system,” Jha told this daily today.

“There is a similar system in practice in India, as well.”

According to Jha, the larger cylinders to be brought in use for commercial purposes will be made available in a different colour from the red 14-kilo cylinder found in the market currently.

But Jha did not say from when this system would be adopted. This is because there are no laws governing the distribution of cooking gas till now.

The NOC is certain to lose Rs. 150 million on cooking gas this month after receiving a record high price list from the Indian Oil Corporation (IOC) at the beginning of this month.

The government owned company is currently losing Rs. 254 on every cylinder of gas it sells. When asked about the NOC’s plan, Rajendra Dallakoti, the vice president of Nepal LP Gas Industry Association said the body had no objection to such a plan but the government should come up with a strong mechanism to check abuses of the system.

Lately, the state-owned petroleum monopoly is under increasing pressure to resume regular supply of LPG is the market.

Yesterday lawmakers grilled the Minister for Industry, Commerce and Supplies Shyam Sundar Gupta over the shortage of petroleum in the market even after petroleum prices were raised about one and a half months ago. Gupta replied that the Prime Minister had instructed the Finance Ministry to release funds to the NOC so that it could clear its dues to the Indian Oil Corporation.