Nepal Tackles LPG Gas Shortages with Supply Chain Reforms and Infrastructure Development

Summary

Nepal is moving to ease recurring LPG shortages by boosting imports, separating domestic and commercial cylinders, and enforcing real pricing for commercial users. The government also plans a Motihari-Sarlahi pipeline and storage depots to reduce dependence on road transport from India.

Key Points
  • Nepal Oil Corporation and gas industrialists are coordinating supply reforms to address recurring LPG shortages caused by road blockades and disasters.
  • The government plans to separate domestic and commercial cylinders, use actual pricing for commercial gas, and curb artificial scarcity through monitoring teams.
  • Immediate relief measures include increasing daily imports from India and distributing gas from Terai industries to Kathmandu.
  • The long-term solution under discussion is the Motihari-Sarlahi pipeline and new storage facilities in Sarlahi to reduce transport risks and costs.
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