Government to Centralize LPG Subsidy for Genuine Consumers
Summary
The government and Nepal Oil Corporation are preparing to end LPG subsidies for commercial users and shift the benefit to genuine household consumers. A dual pricing system, separate cylinders, or direct cash support are under discussion to reduce losses and stabilize cooking gas prices.
Key Points
- The government plans to remove LPG subsidies for hotels, restaurants, and industries and redirect support to ordinary households.
- Nepal Oil Corporation currently sells LPG below cost, losing about Rs 640 per cylinder.
- The corporation is considering a dual pricing system and separate cylinders for domestic and commercial use.
- The Nepal LP Gas Industry Association has proposed starting with 10 percent commercial cylinders or using direct cash subsidies through banks.
