Why Has the Gas Shortage Reoccurred?
Summary: After the government resumed full cylinder distribution, increased demand has caused shortages of cooking gas in Kathmandu and several other areas. Business operators report that consumers, driven by fear, are holding more cylinders than needed, and disruptions in the supply rotation system have created market problems. The Nepal Oil Corporation denies any gas shortage, stating that supply has been increased and sellers have been instructed to prioritize essential groups.
Kathmandu, July 30: Less than two weeks after the government began dispatching fully filled LPG cylinders to the market, consumers across Kathmandu Valley and various districts are facing gas shortages. In the absence of gas, the public has been queuing at dealers and suppliers to exchange empty cylinders, sometimes enduring weeks-long waits just to get one cylinder refilled. This complaint has become widespread among consumers.
Previously, due to intensified shortages, the Nepal Oil Corporation arranged to sell half-filled cylinders (7.1 kg) starting late February 2026 BS (mid-March 2020). However, now that the distribution of fully filled cylinders has resumed, dealers report a sudden spike in demand has triggered shortages.
While gas depots are overwhelmed with consumer crowds, the Nepal Oil Corporation continues to assert that there is no shortage. Despite this, long lines persist at gas outlets such as the Nepal Gas Depot inside Balaju Industrial Area, indicating ongoing supply difficulties.
Where Did the Gas Go?
Robin Karki, Treasurer of the Nepal Gas Dealers Federation, explains that the shortage is not due to limited supply but arises from panic among consumers and a rush to refill thousands of empty cylinders that had accumulated over months. According to Karki, regular supplies have been consistent daily; however, fewer cylinders were lifted over the past four months because industries refrained from buying gas to avoid losses, resulting in 48,000 to 50,000 empty cylinders piled up in the market.
“Suddenly, with the arrival of 14.2 kg cylinders, everyone wanted gas at the same time, releasing all these empty cylinders into the market simultaneously, creating a crisis,” he said. He also noted that the half-filled gas initiative worsened the problem since these cylinders last only 15 days, forcing customers to refill frequently and disrupting the supply rotation, accelerating the return of empty cylinders.
Currently, students and small families with only one cylinder are the most affected. “Those who previously had 5-7 empty cylinders are now trying to refill them all,” Karki said. While those with capacity stock up, one-cylinder households and students unable to stockpile bear the brunt of the shortage.
Karki revealed that demand at dealers is currently very high, ranging from 1,500 to 1,800 cylinders daily, but only 300 to 400 cylinders are being sold. “I cannot fulfill this demand at once, and consumers keep returning to dealers in vain,” he added, describing how dealers are also struggling to manage the situation.
The federation warned the oil corporation and government three months ago about this impending crisis, urging regulations to prevent consumers from holding more than two cylinders or mandating purchase only upon empty cylinder return. “None of these measures were implemented,” Karki lamented.
Industry Perspective: Policy Delays Major Factor
Diwan Chand, President of Nepal LPG Gas Industry Association, attributes the current shortage primarily to government policy delays. He asserts that the countrywide scarcity is not due to a supply decline but the government’s failure to timely decide and distribute fully filled cylinders.
Accepting severe gas shortages from the Far-Western to the Far-Eastern regions, Chand blamed artificial scarcity and consumer hoarding for the crisis. He stated they had alerted parliamentary committees about the necessity of switching to 14.2 kg cylinders earlier and warned the delay would cause management difficulties.
“As predicted, the later the adoption of 14.2 kg cylinders, the harder it becomes to manage the market. I told ministers, secretaries, and MPs that normalization would take two months,” Chand explained. He mentioned that there are 15 million cylinders in Nepal, and rumors of fully filled cylinders prompted consumers to hoard empties, causing the current frenzy.
According to Chand, gas supply has increased by 5-7%. “While regular consumption is around 45-46 thousand tons, current usage has reached 48-49 thousand tons,” he said. “We are selling approximately 120,000 cylinders daily.”
Mismatched Demand: One Cylinder Needed, Three Requested
Gokul Bhandari, operator of Nepal Gas, the largest player in the market, claims there is no shortage in imports and that the apparent crisis is due to consumers’ excessive and panicked demand.
“Our quota is about 2,400 tons, and that gas arrived this month,” Bhandari stated. “The demand spiked by 10-20% because half cylinders rapidly switched to full, causing a sudden surge.” He urged consumers not to panic, explaining that there are no import issues across the gas industry.
“If those who truly need gas take only what they need, there is no problem,” Bhandari said. He criticized consumers for demanding three cylinders when only one is necessary and urged those without urgent need to wait.
Corporation’s Explanation: No Nationwide Shortage, Supply Increased
Following widespread complaints and long queues, the regulatory body, Nepal Oil Corporation, stated efforts are underway to stabilize the market. LPG and Aviation Department Director Binitmani Upadhyay asserted the shortage is not nationwide but limited to areas like Dang, Surkhet, and parts of Kathmandu.
“The shift from 7.1 kg to 14.2 kg cylinders caused a gap which released many cylinders simultaneously, boosting demand by 10-20%,” said Upadhyay. The corporation has increased supply to address the pressure, ordering over 100 bullet trucks daily and recently receiving up to 140-145 bullet trucks to maintain regular delivery.
Upadhyay claimed dealers have been instructed to prioritize essential groups including elderly, students, maternity patients, and the sick. The corporation held discussions with representatives of the Valley Gas Dealers Association on Wednesday to this effect.
Rumors of black market trading have been refuted by the corporation, with market monitoring teams including district administration and commerce officials finding no evidence to date. “We have no information confirming black marketing, though pressure is evident,” Upadhyay said.
The root causes of the current crisis lie in government’s inadequate prior assessment of policy impacts, failure of dealers to maintain balanced distribution systems, and consumers’ panic-induced hoarding beyond actual needs.