LP gas bottlers to separate blue and red cylinders for household and commercial users
Summary
LP gas bottlers in Nepal will begin separating household and commercial supplies with blue cylinders for industrial users and red cylinders for households. The move is aimed at introducing differentiated pricing, reducing subsidy losses for Nepal Oil Corporation, and improving sales transparency.
Key Points
- The Nepal LP Gas Industry Association has decided to allocate 10 percent of LPG supplies to industrial and commercial consumers immediately.
- Household consumers will keep using 14.2 kg cylinders, while commercial users will gradually shift to larger blue cylinders such as 19 kg, 50 kg and 450 kg.
- The government currently subsidizes each 14.2 kg LPG cylinder by Rs 495, creating an annual burden of about Rs 10 billion for Nepal Oil Corporation.
- The association will also require VAT-compliant invoices for all gas transactions from mid-January 2027.
