KATHMANDU: After the government promised to organize a research committee to address their demands, cooking gas companies decided to postpone their planned rallies. Following talks between the gas entrepreneurs and representatives from the Ministry of Industry, Commerce, and Supplies, the decision was made.
Prior to Wednesday, the Nepal LP Gas Association (NLPGA) declared that it would no longer be collecting purchase delivery orders (PDOs) from Nepal Oil Corporation (NOC). The business owners have been calling for changes to the commissions paid to LPG dealers, the cost of transportation, and other operational expenditures, which they say haven't altered in the last six years.
They have urged the government to fix a minimum commission of five percent for gas dealers and increase their commission by Rs 144 per cylinder. According to them, the additional amount is necessary to cover rising expenses related to transportation, distribution, technical losses, and maintenance of gas cylinders.
Minister Damodar Bhandari promised them that their demands would be met, therefore the protests were postponed for 15 days, according to former NLPGA president Gokul Bhandari. He underlined that the decision to put an end to the agitation was made sincerely in the hope that the administration would act.
However, a study report written by specialists from Kathmandu University and Tribhuvan University was rejected by the LPG businesses. The entrepreneurs believe that the report's suggested commission increase of just Rs 12 per cylinder is insufficient to offset their growing expenses.
The announcement of protests by gas suppliers has already created an artificial shortage of cooking gas in the market. Traders have reported that excessive stockpiling by consumers and bottlers has led to limited availability of gas in several areas.
59 gas bottlers declined to pick up PDOs from the NOC on Wednesday. Since LPG businesses import gas from Indian Oil Corporation depots based on these orders, any disruption in the PDO system's collection has an impact on the supply chain.
Approximately three million cylinders of LPG are currently circulated monthly throughout the country by bottling facilities. Approximately 40% of all imports are used in the Kathmandu Valley, and there are about 12,000 gas depots supplying cooking gas nationwide.
