The Nepal Oil Corporation (NOC) has suggested that Liquefied Petroleum Gas (LPG) companies sell 30% of their monthly gas quota at commercial rates.
This suggestion arose during a meeting with NOC officials and the Nepal LPG Industry Association representatives.
LPG companies should purchase 30% of their monthly quota from NOC at commercial rates until diverse capacity cylinders for commercial use are available in the market.
This approach aims to distinguish between gas for domestic use and gas for hotels, restaurants, and other businesses, leading to a more organized distribution and pricing system.
Gas industries have a seven-day deadline to decide on this proposal.
If accepted, the gas would be designated for business use or distributed under a specific brand name.
This would serve as a temporary fix until varied capacity cylinders for commercial purposes are introduced.
NOC also discussed the possibility of merging LPG companies to reduce costs and enhance management.
One suggestion included using a single logo on LPG cylinders nationwide instead of having different brands for each company.
These recommendations aim to streamline the LPG industry.
Nepal is working to separate subsidized LPG for domestic use from commercial gas.
Currently, most domestic and business users rely on standard LPG cylinders, making it challenging to differentiate between domestic and commercial needs.
Implementing the 30% quota would provide a temporary solution for a clearer commercial supply.
However, this recommendation is not yet finalized and will depend on the response from gas industry operators after their internal discussions.