Possibility of Nepali Army Operating LPG Business: Response from Nepal Oil Corporation
The spokesperson for the Nepali Army has confirmed that preliminary discussions have taken place regarding the operation and storage of LPG gas. Although initial talks were held at the departmental ministry level about allowing the army to run a gas industry, Nepal Oil Corporation has clarified that no formal proposal has been received. Recently, following government proposals, discussions on the army running an LPG cooking gas business have intensified. Some groups have raised objections to the potential involvement of the army and police in gas distribution, while others argue that it could streamline the supply system.
Attempts to get feedback from the Ministry of Industry, Commerce, and Supplies were unsuccessful as calls went unanswered; the minister, Deepak Kumar Sah, was reportedly busy. The Nepali Army currently operates petrol pumps across key locations in the country, including Kathmandu, through its welfare fund. Army spokesperson Rajaram Basnet acknowledged the existence of preliminary talks at the ministry level but stressed that the army itself has not held any final discussions. “I have heard of initial discussions at the ministry, but we have not engaged in any talks from our side,” he said.
When asked how the army would respond if requested to operate a gas industry similar to the petrol pumps it runs, Basnet stated, “No decision has been made on this matter so far.” According to him, military officials view the petrol pumps operated via the welfare fund as strategic storage locations. At present, the Nepali Army manages seven petrol pumps nationwide: three in Kathmandu and one each in Itahari, Tanahun, Rupandehi, and Surkhet.
Sources from the government-owned Nepal Oil Corporation convey that no formal information about involving the army in the gas business has been received. “We have heard of initial-stage discussions at the ministry level, but no official proposal has come to us yet,” an official explained. According to the source, if the army or security agencies receive authorization, they might obtain dealerships. However, as talks between the ministry and army remain preliminary, officials indicate no certainty at this time.
Currently, Nepal has 58 private LPG industries with a combined storage capacity of 10,000 tons, sufficient to meet roughly seven days’ demand. Most industry players consider it inappropriate to involve security forces in the business. Divan Chand, president of the Nepal LPG Industry Association, stated, “Since we have an open market policy, we are ready for competition, but our stance is against involving the army in commercial activities.” He added, “This may lead to conflict in the future, which would be unfavorable.” Chand pointed out that government agencies like the Food Corporation and Nepal Salt Trading Corporation already maintain secure arrangements, making it unnecessary to reintroduce the army.
He also warned that involving the army in the gas sector could send negative messages. “The army is supposed to work only during emergencies. If it is present everywhere, it sends a signal that other government bodies are incapable,” Chand emphasized. The debate about the army’s role arose amid concerns that Middle Eastern conflicts could disrupt the LPG supply. However, industry representatives hold the Corporation solely responsible, insisting on effective management or allowing private importation. “The Corporation has been the sole importer and must manage effectively; otherwise, private parties should be permitted to import,” Chand concluded.