Supply of cooking gas, petroleum normal: NOC

Kathmandu, Mar. 18: Nepal Oil Corporation (NOC) has clarified that there is no need for consumers to panic, as the supply of petroleum products, including cooking gas, remains normal to date.

According to Manoj Kumar Thakur, spokesperson for Nepal Oil Corporation (NOC), the import of petroleum products from Indian Oil Corporation (IOC) has been normal as per domestic demand as of Tuesday.

“The IOC has been supplying petroleum products, including liquefied petroleum gas (LPG), to the NOC on a regular basis. IOC has also assured us that it will continue to provide petroleum products according to Nepal’s normal consumption,” he told The Rising Nepal.

Daily consumption stands at 2,000 to 2,500 KL of petrol, 4,500 to 5,000 KL of diesel, 600 KL of aviation fuel, and 1,500 tonnes of cooking gas.

Thakur also said that the NOC has been maintaining stock of petroleum products according to its capacity.

Currently, around 80 per cent of the total storage capacity is filled. 

The total storage capacity of petroleum products across the country is 102,000 KL.

However, Thakur urged consumers to use LPG and other petroleum products responsibly to ensure a smooth supply in the coming days.

As Nepal is completely dependent on imported petroleum products, he emphasised the need to adopt precautionary measures to manage consumption and maintain supply stability.

Despite continued imports and distribution, gas consumption in the Kathmandu Valley has increased significantly over the past two to three months, Thakur said.

Considering the high demand for cooking, the NOC has already started distributing half-filled gas cylinders.

He added that the decision was taken due to rising global demand for gas and supply disruptions caused by ongoing international conflicts.

Careful consumption

To reduce dependence on LPG, the corporation has encouraged the use of electricity wherever possible, including for cooking.

He also suggested adopting ride-sharing practices to minimise fuel consumption and avoiding the use of generators when electricity is available.

According to the corporation, tensions in the Middle East and rising international petroleum prices have put pressure on supply management.

“Every citizen of Nepal should act responsibly to ensure a smooth supply of petroleum products by minimising consumption. Reducing the consumption of imported petroleum products will help minimise the losses faced by the NOC and make supply smooth,” he said.

Even after the adjustment of petroleum product prices, the NOC will bear a loss of Rs. 3.93 billion per fortnight. 

The NOC has increased the price of petrol by Rs. 15 per litre, while diesel and kerosene have been increased by Rs. 10 per litre each.

He clarified that there has been no increase in the price of cooking gas despite huge losses, considering consumer interests.

According to the new prices received from the IOC, petrol prices have increased by Rs. 31 per litre, diesel by Rs. 54 per litre, and cooking gas by Rs. 216 per cylinder.

Despite the significant price hike, the NOC has adopted a policy of adjusting prices while bearing some losses through its price stabilisation fund.

It also said that both price adjustment and supply management have become challenging for countries without their own petroleum resources.

Intensified market monitoring 

To ensure the smooth supply of petroleum products, especially cooking gas, the Department of Commerce, Supply and Consumer Protection and other local authorities have intensified market monitoring.

Amid reports of an acute shortage of LPG in the market, a large quantity of gas was found stored at the depot of Shriram Gas Industries in Harisiddhi.

A market monitoring team led by the Department visited the depot and found 6,377 filled gas cylinders stored there on Monday.

According to our Butwal correspondent, an artificial shortage of cooking gas has been reported in Rupandehi district, with traders found hoarding stock to earn higher profits.

A joint monitoring team from the Area Administration Office, Butwal, along with representatives from the Rupandehi Gas Dealers Association, Butwal Sub-Metropolitan City, and Sainamaina Municipality, uncovered the issue during inspections of various gas dealers.

According to Ram Prasad Sharma, a non-gazetted officer at the Area Administration Office, more than 500 gas cylinders were found hidden across 15 different gas dealers during the monitoring process.

During the monitoring, it was also found that Langhali Gas Dealer, located in Sainamaina-5, was selling gas for about Rs. 300 more than the prescribed price, Sharma said.