Shortage of Cooking Gas Sparks Black Market Activity: What Are the Penalties for Overcharging?
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Officials have stated that after imports from outside the Kathmandu Valley were halted for four days, a shortage of cooking LPG gas in Kathmandu led to the emergence of black market activity.
The Department of Commerce, Supplies and Consumer Protection has imposed fines of NPR 300,000 each on two individuals this week alone for selling gas at prices above the fixed rate, according to department spokesperson Anil Kirati.
Kirati added that following complaints related to cooking gas, seven shops were penalized within a week. The department has levied fines ranging from NPR 10,000 to NPR 300,000 on these shops.
“The department has the authority to impose fines between NPR 200,000 and NPR 300,000 on anyone selling gas above the prescribed price,” Kirati said.
According to the department, those penalized were found to be selling gas cylinders for as much as NPR 2,650 each.
Complaints of Prices Up to NPR 3,200
A complaint has been received by the department alleging that gas cylinders were sold for as much as NPR 3,200, and investigations and monitoring are ongoing on many such complaints, said the department spokesperson.
He added that some vendors have not been fined due to insufficient evidence.
Other government agencies are also actively monitoring and taking action alongside the department.
Following complaints of prices as high as NPR 2,900 per cylinder, police in Bhaktapur have taken two shop owners into custody for investigation, Bhaktapur Police Chief Surya Khadka said.
“Upon investigation after the complaint, we found gas being sold for NPR 2,800 to NPR 2,900 per cylinder and have arrested the shop owners,” Khadka stated.
“This also clearly indicates instances of black market activity.”
The Gas Sellers’ Association has also directed strict action against those selling gas at higher than the fixed rates.
“We strongly demand the government undertake strict legal action against anyone making undue profits by selling beyond the government’s fixed price,” the association said in a statement released Friday.
Vinod Kafle, General Secretary of the association, explained that vendors have been hoarding and deceiving industrialists and businesspeople, which has increased black market activities.
“Currently, hotels themselves are going out to refill gas cylinders. Vendors have not been able to obtain gas. They know who is refilling more gas and who needs it,” Kafle remarked.
Questions Raised Against Government
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Images showing long queues of people carrying empty cylinders at government-managed gas distribution centers and industries have circulated on social media, prompting the public to question the government. As the gas shortage remained unresolved for an extended period, Industry Minister Gaurikumar Yadav resigned on Thursday amid criticism.
Ruling National Independent Party MP Ashika Tamang stated in the House of Representatives on Friday that merely changing the minister will not solve the gas problem.
Even with government intervention, Nepal Oil Corporation has no clear timeline on when gas will be easily available.
Corporation spokesperson Manojkumar Thakur commented, “Gas distribution in Kathmandu exceeds daily requirements, but demand is still higher.”
He also said that media reports spreading concern contribute to the gas shortage issue.
“When the media reports gas shortages, people say I already have one cylinder and want to get another,” he explained.
How Much Gas Is Arriving in Kathmandu?
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According to spokesperson Thakur, the volume of gas entering the valley in recent days has exceeded the average.
After the highway was blocked at Krishna Bhir, gas cylinders were refilled outside Kathmandu and imported through alternative routes such as Tribhuvan Rajpath, Thakur said.
He stated that over 40,000 gas cylinders have been arriving daily in the valley in recent days.
However, the corporation acknowledged it cannot meet consumer demand because the current demand exceeds supply.
Industries claim that daily demand in the valley ranges from 40,000 to 45,000 cylinders, while the corporation reports availability of only 35,000 to 40,000 cylinders.
On September 1, when the road was blocked at Trishuli Krishna Bhir, gas delivery motorcycles carrying 1,200 cylinders were unable to enter Kathmandu.
After the supply in the valley was nearly halted for four days, industry operators were permitted to refill gas cylinders outside the valley.
Gas industries in areas such as Chitwan, Hetauda, Bara, Parsa, Bhairahawa, and Nawalparasi have been filling cylinders and transporting them by truck to Kathmandu.