LPG Shortage 2026

An editorial said the LPG shortage worsened after floods and landslides blocked the Prithvi Highway, leaving Kathmandu households in long queues for cooking gas. It called for digital tracking of cylinders, surprise inspections, and tougher penalties against hoarding and artificial shortages.

Flood damage on the Prithvi Highway sharply reduced LPG deliveries to Kathmandu Valley, cutting daily transport to about 20,000 cylinders from demand of 100,000. The disruption also pushed up prices of LPG and other essentials as dealers sought advance payment and black marketing intensified.

Nepal Oil Corporation rerouted petroleum and cooking gas supplies to Kathmandu via the Tribhuvan Highway after the Prithvi Highway collapse at Krishnabhir. It said about 24,500 cylinders arrived on Bhadra 18 and another 34,134 on Bhadra 19, while companies were told to keep distributing on public holidays.

Nepal Oil Corporation shifted LPG and fuel deliveries to Kathmandu Valley onto alternative routes after Prithvi Highway damage, adding 13–14 hours of travel time. LPG companies also began filling cylinders in other districts and trucking them into the valley, pushing up costs by Rs. 105 per cylinder.

The Nepal LP Gas Industry Association and Nepal Oil Corporation arranged alternative refilling and transport routes for LPG after the highway disruption, with an added transport cost of Rs. 105.38 per cylinder. The retail ceiling was raised to Rs. 2,165.38 per cylinder.

Nepal Oil Corporation temporarily stopped LPG sales to commercial users in Kathmandu Valley to prioritize households after flood damage on the Prithvi Highway. Hotels, restaurants and industries were told to arrange their own LPG purchases and transport from outside the valley.

A flooded section of the Prithvi Highway at Krishnabhir collapsed into the Trishuli River, severing Kathmandu’s main supply route. Officials began diverting traffic to alternative roads, worsening congestion and threatening essential supply deliveries.

The Prithvi Highway closure after floods disrupted food and fuel shipments to the Kathmandu Valley, increasing pressure on LPG availability ahead of the festive season. Authorities said they were monitoring markets to prevent black marketing and artificial price hikes.

A former gas industry leader said Nepal’s LPG shortage was being driven more by hoarding and panic buying than by an actual supply collapse. He urged larger storage reserves, a Motihari pipeline, industry mergers, and a targeted subsidy system to stabilize supply and prices.

Nepal Students Union activists protested the ongoing LPG shortage at Tri-Chandra Campus in Kathmandu, carrying empty cylinders to symbolize the disruption. Protesters accused the government of failing to end the shortage and demanded immediate action.

Nepal Oil Corporation and the District Administration Office distributed more than 16,300 gas cylinders across 10 locations in Kathmandu Valley over the weekend. The corporation said regular distribution through appointed sellers would resume on August 17.

Nepal Oil Corporation said it would distribute cooking gas cylinders at seven locations in Kathmandu on August 17 to ease the shortage. Consumers in urgent need were told to show citizenship or national identity cards at designated centers.

Officials and industry representatives said Nepal was still importing enough LPG to meet daily demand, but hoarding, panic buying, and weak distribution were keeping the market unstable. The government also told retailers to keep records of sales to customers to curb black marketing.

Reports said households in Kathmandu Valley and districts such as Rupandehi were lining up for hours again, prompting emergency distribution camps. Officials continued to say the shortage stemmed from distribution failures, hoarding, and a demand spike rather than a supply collapse.

Nepal Oil Corporation said LPG imports remained steady even as shortages resurfaced, and it blamed domestic distribution problems and a surge in demand after full-cylinder sales resumed. Officials said households with only one cylinder were especially affected.

Plainclothes police were deployed to gas depots across the Kathmandu Valley to monitor sales amid complaints of black marketing and artificial shortages. The government said it would tighten monitoring and take legal action against businesses hiding stock or charging above the fixed price.

LPG shortages intensified across Nepal, with households in Kathmandu Valley and other cities waiting up to 10 days for refills. Nepal Oil Corporation began distributing gas from its own premises in Kathmandu, but supply remained insufficient for households and businesses.

Long queues formed outside Nepal Oil Corporation in Kathmandu as residents rushed to buy cooking gas amid fears of supply disruptions. The rush created an artificial shortage of LPG cylinders across the capital.

Nepal Oil Corporation resumed selling full 14.2 kg LPG cylinders on July 15, after previously distributing half-filled 7.1 kg cylinders during panic buying. Consumers then faced shortages amid allegations of hoarding and artificial scarcity.

LPG shortages spread across various parts of Nepal, and some consumers were waiting up to a week for a cylinder. The shortage followed the return to full-cylinder distribution after a period of half-cylinder sales.

Kathmandu Valley and other parts of Nepal reported a severe LPG cooking gas shortage, with consumers waiting weeks to buy cylinders. Officials said imports were sufficient, while distribution problems and hoarding were worsening the crunch.