Gas Shortage in Nepal: Where Did the Gas From 4 Million Cylinders Imported in One Month Go?

Despite heavy rain on Saturday, many citizens lined up for cooking gas but had to return empty-handed due to a shortage, even when the government managed the distribution itself. Although the government operated gas distribution on Saturday and Sunday, it was unable to meet the demand, leading to the resumption of regular sales at distribution centers from Monday onward. Long queues persisted at gas shops where people waited with empty cylinders. According to the Customs Department, Nepal imported 57,335 metric tons of gas in just the month of Shrawan.

Nagendra Sah, Managing Director of the Nepal Oil Corporation, noted that this is the highest monthly gas import in Nepal’s history. The 573.3 million kilograms of gas imported in Shrawan is sufficient to fill 4 million cylinders of 14.2 kilograms each. The Gas Industry Association estimates that approximately 17.5 million gas cylinders are currently in use in Nepal. The volume of gas brought in during Shrawan could fill about one-quarter of all cylinders currently in use across the country. Experts have indicated that filling all cylinders simultaneously would require 250 million kilograms of gas.

Before Shrawan, continuous gas imports were recorded, with suspicions that gas has been stored in homes, restaurants, hotels, and offices. Former president of the Gas Industry Association Shiv Prasad Ghimire explained that under normal conditions, one-third of gas is with consumers, and the remaining two-thirds are with the industry, vendors, and in transit. “Cylinders are distributed among three locations: the industry, transport vehicles, and vendors, as well as consumer households. There are no official statistics, but typically 33% would be at consumers’ homes, another 33% with vendors and in transit, and the remaining 33% with the industry,” Ghimire said.

Ghimire estimated that currently more than 33% of the gas may already be filled and stocked. “Data shows over one-third of gas is at consumer households,” he added. “Based on import and sales data, approximately 40-45% of gas should be already filled. However, sometimes a household’s stove can run out of gas, which worsens the problem when immediate supplies are insufficient.” He further stated that neither the industries nor vendors currently have significant gas reserves; cylinders sent from industries are filled and sent to market within a day or a bit longer, and vendors sell the gas within hours. “There is indeed a shortage, especially for consumers who only own one cylinder and have to line up after it runs out,” Ghimire said.

“On the other hand, those who have five cylinders started filling all of them,” added Nagendra Sah. “We currently have a six-month supply of gas in storage, but mostly affecting those with only one cylinder. Because some consumers refill two, three, or four cylinders, our daily market sales target of 3.2 million cylinders now requires sending 800,000 more cylinders daily,” Sah explained.

Due to increased risks associated with storing excessive gas at home, Nepal Oil Corporation has recommended greater use of electric stoves to reduce gas consumption. “We urge people not to stockpile large quantities of gas. For safety reasons and to ensure fair distribution, please avoid hoarding,” Sah said. Given that gas cylinders can exacerbate damage during some fire incidents, the corporation has requested that people refrain from storing gas amid fears of future shortages.

Customs Department data reveals that over the past four months since Chaitra, the gas supply has been less than average demand. For instance, in Falgun, 51,192 metric tons of gas were supplied—enough to fill 3.5 million cylinders. However, after February 13, only half cylinders were distributed, which led to a reduction in imports from India. In Baisakh, only 32,000 metric tons were imported, enough for 2.2 million cylinders. Although half cylinders started being sold, 4.4 million cylinders could be filled in that month. Imports in Jestha were slightly higher by 800 metric tons compared to Baisakh.

Ghimire, from the gas industry, explained that imports were reduced as customers were not able to empty the gas from delivery trucks, causing over 150 trucks to be held up at various borders. “There was no space for storage at the industry as consumer demand was not increasing,” he said. Nepal’s 58 gas industries have a combined storage capacity of 11,000 metric tons, enough for five days’ demand. Since the resumption of half cylinder sales, Nepal has received 35,000 metric tons less gas than demanded over four months. Customs data shows that 44,000 metric tons were supplied in Asar, which is 3,000 metric tons less than average demand. However, imports have exceeded average demand in Shrawan, according to the Customs Department.

Since the resumption of gas distribution into cylinders from the end of Asar, the shortage has begun to ease, said Managing Director Sah. “According to data, continuous gas shipments are arriving. The supply and demand imbalances will gradually be resolved,” Sah stated.