Black Marketing of Cooking Gas: New Cylinders Available, But Dealers Deny Refill

For the past several weeks, the country has been grappling with an acute shortage of Liquefied Petroleum Gas (LPG), the primary cooking fuel for households. Gas depots across Nepal have displayed 'No Gas' signs, forcing consumers to carry empty cylinders from one depot to another in a desperate search for a refill.

However, amidst this scarcity, a parallel market has emerged where new gas cylinders are readily available for purchase. Consumers allege that this shortage is artificial, created by traders to maximize profits, causing widespread hardship.

Residents in various parts of Kathmandu have complained that while dealers refuse to refill their old cylinders, citing a lack of stock, they are quick to sell a new cylinder filled with gas to anyone willing to buy one.

Deepika Bhatta, a resident of Kirtipur, shared her frustrating experience. "I had been trying to get my empty cylinder refilled for three days, but all the shopkeepers kept saying there was no gas," she said. "Then, one shopkeeper told me he could provide gas if I bought a new cylinder. Even though I already had an empty cylinder, I was forced to buy a brand new one to get gas."

Ishwari Sharma, originally from Kailali and currently living in a rented room in Tikathali, had a similar ordeal. "When my gas ran out, I went to the shop with my old cylinder for a refill. The shopkeeper said I could only get gas if I purchased a new cylinder," Sharma recounted. "In the end, I bought a new cylinder and also managed to get my old one refilled elsewhere. Now I have two cylinders."

Shiva Prasad Ghimire, the outgoing president of the Gas Industry Association, claimed the association had no information about such practices. He suggested that consumers file complaints with the relevant authorities if depots are selling new cylinders while refusing to refill existing ones. Ghimire asserted that gas supply has improved compared to the past, stating that imports have increased from 80-90 bullets per day last month to over 100 bullets daily now.

Consumer rights advocates attribute this trend to the higher profit margins dealers earn from selling new cylinders compared to the commission from refilling old ones. When a new cylinder is sold, the dealer profits from both the cylinder deposit and the gas price.

Madhav Timilsina, chair of the Consumer Interest Protection Forum, labeled the practice a scam. "By creating a false impression of a supply problem, traders are forcing consumers into buying new cylinders, which is outright cheating," he said. Timilsina also urged the government to take the matter seriously, warning that the recent tensions between Iran and Israel in the Middle East could exacerbate the supply situation.

Nepal imports its LPG primarily from the Mathura, Barauni, Paradeep, and Durgapur refineries in India. While supplies from the Mathura refinery are regular, the Barauni refinery, a key and geographically close supplier, has experienced intermittent halts due to maintenance and technical issues in its old plant. Industrialists report that supplies from Barauni have now partially resumed.

Nepal Oil Corporation (NOC) has urged the public to immediately file complaints with the corporation or the Department of Commerce if they encounter dealers creating artificial shortages, overcharging, or forcing the purchase of new cylinders.

NOC spokesperson Manoj Kumar Thakur stated that the current market pressure is largely driven by panic and hoarding, fueled by rumors of a shortage. He confirmed that imports are meeting the monthly quota. "An average of 1.5 million cylinders are consumed monthly, amounting to over 45,000 tons of LPG, with consumption rising by up to 15 percent in winter," Thakur said. To address the increased demand, imports have been higher than average over the last three months, with 47,000 tons in Poush (mid-December to mid-January), 46,000 tons in Magh (mid-January to mid-February), and 26,000 tons by February end.

"Supply is in line with demand, but rumors of a shortage have created fear, leading consumers to hoard more than they need," Thakur added. He noted that while the 'Nepal Gas' company initially faced some supply issues, the problem has now spread to almost all gas companies operating in the valley. NOC maintains that the current market imbalance is a direct result of rumors and panic hoarding.