Nepal Revives Dual LPG Cylinder System Amidst Past Failures
Summary
Nepal is reviving a dual-pricing LPG cylinder system for domestic and commercial users after a similar policy failed a decade ago. The Nepal Oil Corporation says the move will reduce losses and target subsidies better, while gas industrialists argue the plan is impractical and favor repainting existing cylinders instead of adding new sizes.
Key Points
- The government is preparing to reintroduce separate LPG cylinders and dual pricing for domestic and commercial consumers through the Nepal Oil Corporation.
- Officials say the current single subsidized price causes a loss of about Rs 640 per cylinder and allows subsidies to be misused by hotels and other commercial users.
- Gas industrialists oppose mandatory new cylinder sizes and recommend changing the color of existing cylinders instead.
- Industry representatives say the government should begin with a smaller commercial quota and improve monitoring before expanding the policy.
