Gas Traders Reject Government Policy, Will Sell Full 14.2-Kilogram Cylinders Starting Monday

In response to rising diesel prices, gas traders have resolved to sell full 14.2-kilogram gas cylinders starting Monday, openly defying the government’s ‘half-cylinder’ policy designed to prevent gas shortages. The traders assert that without diesel transportation subsidies, continuing business is unfeasible. Meanwhile, Nepal Oil Corporation has stated that there is no immediate gas shortage but cautioned that potential future crises require vigilance.

Kathmandu, 8 Baisakh – In an effort to avert the gas shortage visible in the market, the government had introduced a policy allowing the sale of only half-filled cylinders. However, gas traders have announced they will not adhere to this mandate and, without waiting for formal government approval, will begin selling full 14.2-kilogram cylinders to consumers from Monday.

This decision was reached during a joint meeting between the Gas Sellers Federation and the Nepal LPG Gas Industry Association, according to Gyaneshwar Aryal, President of the Gas Sellers Federation. Aryal explained that the unexpected diesel price surge has rendered transportation costs unsustainable for the traders, compelling this move. Although the government had earlier decreed filling only half cylinders (7.1 kilograms), this policy has negatively impacted both traders and consumers.

“We have unanimously decided to sell full 14.2-kilogram gas cylinders from Monday,” Aryal stated. “If the government fails to provide diesel transportation subsidies, making continued business impossible, we will formally notify the government tomorrow.”

Aryal also warned that due to ineffective policies from Nepal Oil Corporation, a serious gas shortage could occur within the next two months. According to the Nepal LPG Gas Industry Association, all gas bullets at industries are currently fully loaded and there are no issues sending cylinders to the market at full capacity. The industry officials share that the restriction to sell only half cylinders has made it difficult to sell the existing gas stock.

Further, with many half-weight cylinders accumulating in customers’ homes, gas bullets arriving from India remain unloaded at industries, creating a backlog. The current practice of dispatching only 7.1-kilogram cylinders and delays in unloading gas bullets have resulted in all bullets being stuck.

“All gas bullets are now stalled. If Nepal Oil Corporation does not pay attention, we may face a gas shortage within two months,” Aryal added.

The traders have repeatedly engaged the relevant government stakeholders, but allege a lack of positive response. They have suggested to government affiliates not to raise diesel prices, but these recommendations have not been heeded. To safeguard their commercial viability and ensure supply continuity, the traders found it necessary to take this decision independently.

Aryal cited examples from neighboring South Asian countries—including India, Bhutan, and the Maldives—that have refrained from raising diesel prices in efforts to maintain economic stability. “While neighboring countries have worked to preserve economic conditions by not increasing diesel prices, Nepal’s government has made no substantial efforts,” he remarked.

With rising diesel and associated transportation costs, traders insist they cannot continue selling gas at a loss. Although Nepal Oil Corporation maintains there is currently no gas shortage, it emphasizes the importance of caution in light of possible future crises.