Industry Minister Warns Gas Entrepreneurs Amid Supply Shortage, Calls for License Revocation
Industry, Commerce, and Supplies Minister Gaurikumar Yadav has warned gas entrepreneurs in the industry committee that the licenses of 58 gas businesses should be revoked and cautioned that shortages will not be tolerated until these businesses ‘shut down.’ Due to a severe cooking gas shortage in the Kathmandu Valley, consumers are forced to wait in lines day and night, with cylinder prices reaching up to NPR 3,000. Consumer rights activists and gas industry representatives have criticized the minister’s remarks, urging her to withdraw the statement and calling on the government to coordinate with the private sector to manage supply effectively. Kathmandu, September 9.
During the industry committee meeting on Wednesday morning, Minister Yadav stated, “The current gas shortage is due to the entrepreneurs, and it is unacceptable to endure this shortage until they shut down.” She further insisted that the licenses of the 58 operational gas businesses should be canceled. “The country does not need that many gas industries; just two would suffice,” she added. At present, the Kathmandu Valley is facing an acute scarcity of cooking gas. Consumers must wait in long lines day and night to get a cylinder, and prices have soared from NPR 2,060 to NPR 3,000.
Nepal Oil Corporation and the Ministry of Industry periodically publish gas supply data. However, the government-released figures do not align with actual market conditions, as consumers often fail to obtain gas even after waiting for hours. The persistent shortage has been further complicated by a recent natural disaster; since August 29, a landslide at Krishnabhir has severely hampered gas deliveries. Alternative routes have not ensured smooth supply to consumers, and the government has been unable to manage the crisis effectively.
Minister Yadav’s remarks have heightened tensions rather than offered solutions. Her statements at the industry committee meeting have intensified conflicts between gas entrepreneurs and the government. The minister expressed frustration that her attempts to take action against entrepreneurs were stymied by non-cooperation from employees within her own ministry. The government currently lacks infrastructure for gas import, storage, and distribution. The 58 operational gas businesses in Nepal are entirely privately owned.
Regarding gas shortages and black marketing, a high-level meeting held at the Ministry of Industry on Monday involved a heated exchange between Minister Yadav and gas entrepreneurs. Attended by the Prime Minister’s advisor, ministry secretaries, Nepal Oil Corporation officials, and industry representatives, the minister reportedly threatened entrepreneurs and vendors with imprisonment. One gas entrepreneur who attended the meeting reported that the minister assigned sole blame to the entrepreneurs, stating they deserved imprisonment.
The minister’s assertion that detaining entrepreneurs would please the public has caused disappointment and discouragement among industry players. Diwan Chand, president of the Gas Industry Association Nepal, said the minister’s remarks have sown frustration among them. “The disrespectful term ‘shut down’ used by the minister must be immediately withdrawn. We have already filed a petition with the Prime Minister and the Council of Ministers’ Office on this matter,” Chand stated.