Global oil shock tests Nepal, but electric cooking cushions blow
Summary
Nepal faces challenges in LPG supply due to global oil shocks, but growing adoption of electric cooking stoves offers some relief. Electricity costs are becoming competitive with LPG, easing the impact on households and businesses amid rising fuel prices.
Key Points
- Nepal’s LPG supply is highly vulnerable due to reliance on imports from India, affecting households and businesses amid rising global oil prices.
- Electric cooking stoves are increasingly adopted in urban areas as a cost-effective and reliable alternative to LPG, reducing dependency on imported fuels.
- The hospitality sector struggles with high electricity tariffs compared to industrial rates, hindering broader adoption of electric cooking.
- Nepal Oil Corporation is incurring losses due to rising fuel costs, managing through a price stabilization fund while supply from India remains steady.
