HEADLINE NEWS THE RISING NEPAL (DAILY)

Consumers forced to pay 50% above market price

BY A STAFF REPORTER

Kathmandu, Jan. 9: An acute shortage of LPG (liquefied petroleum gas) in the capital is forcing consumers to pay as much as 50 per cent above the market price. Others, who have a little time to spare, go to the gas filling station at Balaju.

"I stood in the queue for nearly the whole day for a cylinder. But the taxi fare cost me a fortune," said Laxmi Sharma from Kupondole.

Officials at Nepal Oil Corporation (NOC) say the problem has been fueled by a sudden surge in demand due to its use by vehicles, while consumers blame ‘inefficient’ authorities and ‘profit-driven dealers’ for the shortage.

The demand for LPG has gone up ever since kerosene prices doubled a few months back from Rs. 13 to Rs. 26. Although the price of LPG also rose from Rs. 465 to Rs. 550, quite a few are shifting to gas because it is more convenient and slightly cheaper than burning kerosene.

Gas dealers say more than 50 per cent of kerosene users in Kathmandu have shifted to gas in the past few months, increasing the demand for gas by about 10 per cent. Demands have further increased with the induction of tempos and newly imported mirco-buses that run on LPG. These vehicles alone consume some 1,000 cylinder of gas everyday. And in more recent times, the many dyeing firms in Kathmandu have also shifted to LPG.

Although supply of gas is also increasing, it has been unable to meet the demand. LPG’s monthly import has increased from less than 2,000 metric tons a year ago to more than 3,500 metric tons now. The present demand for LPG is estimated at some 4000 metric tonnes.

Gas dealers say the shortage begins at the source - India’s Barauni-based gas refinery station – from where they get their supply.

Ajit Kumar Jha, an engineer at Nepal Gas Industries, says that the refinery is unable to meet the growing demand. "The station is not only unable to meet demand, its supply is also irregular. This affects the whole distribution system."

Sanu Ratna Maharjan, a retailer at Maharajgunj, said they get only about 10 cylinders every two weeks, whereas the demand is for 200 cylinders every month.

D. R. Bhattarai of Himal Gas blames the tendency of consumers to hoard gas for the worsening situation. Both Bhattarai and Jha denied a nexus between gas dealers and vehicle operators.

Jha instead appealed to the concerned authorities to make arrangements to raise the import ceiling to meet the growing demand.

"We have asked Indian Oil Corporation for an additional 200 metric tonnes from its Mathura-based refinery," NOC’s Chairman Raj Krishna Amatya told The Rising Nepal. But even then, this will not meet the accumulated demand, he says.

Jha said the government should also set up a gas filling station of its own to reduce pressure on the supply system. Agreed Amatya, adding the NOC would soon start the import and sales of LPG for domestic as well as commercial purposes.

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