LPG Gas Supply Disruption in Nepal Due to Hoarding Despite Increased Imports
Summary
Nepal is facing an artificial LPG shortage despite importing more gas than daily demand, as consumers and retailers hoard cylinders and disrupt distribution. Industry leaders are urging better monitoring, targeted subsidies, and long-term infrastructure improvements to stabilize supply.
Key Points
- Nepal Oil Corporation is importing the equivalent of 130,000 LPG cylinders a day, above the estimated daily demand of 110,000, yet the market remains unstable due to hoarding and panic buying.
- Industry officials say the shortage is artificial and driven by consumers keeping unnecessary stock, with students and low-income groups being hit hardest.
- The government has directed retailers to keep records of sales to customers to improve distribution and reduce black marketing.
- Gas industry leaders are calling for clearer petroleum laws, targeted subsidies, and long-term solutions such as storage expansion, pipelines, and PPP-based infrastructure.
