How consumers can be cheated by the sale of half-filled LPG cylinders

 

How consumers can be cheated by the sale of half-filled LPG cylinders

By LB Thapa

The Nepal Oil Corporation deserves praise for maintaining a steady supply of petroleum products—particularly petrol, diesel, and LPG—across the country. A long-term agreement with the Indian Oil Corporation (IOC) has made this possible. 

Even as the Indian government faces challenges in ensuring a steady supply of these fuels within its borders, the Nepali government has managed to sustain distribution nationwide. 

However, the prices of many consumer goods have risen due to the ripple effects of the ongoing conflict involving Iran, Israel, and the United States. Although Nepal does not import crude oil and has not yet experienced a direct impact from the war, a prolonged conflict could change this situation for sure. 

Nepal imports its petroleum products under five-year agreements with the IOC, and the current agreement still has one year remaining. While all petroleum products are being imported in sufficient quantities, cooking gas is being distributed in half-filled cylinders due to supply falling short of demand. 

The corporation claims that despite adequate imports of cooking gas, an artificial shortage has emerged because consumers are purchasing far more than they actually need. Industrialists initially cited import problems but later stated that even with sufficient imports, shortages persist due to consumer stockpiling. Meanwhile, consumer rights activists argue that the “artificial shortage” is deliberately created by industrialists seeking to increase their commission. 

It is plausible that industrialists are hoarding gas to boost profits. By stockpiling LPG cylinders, they create panic in the market. Given the volume of LPG cylinders imported from India, there should be no reason for shortages. 

Industrialists often exploit elections or political instability to pressure for higher commissions per cylinder. This pattern was evident when 6,000 cylinders were discovered at a Sriram Gas depot in Lalitpur. 

It is natural for people to hoard cylinders when they anticipate a shortage. While the wealthy may stockpile more, the middle class and the poor are left to bear the brunt. Ultimately, such behavior of some people disrupt the market cycle. 

Therefore, strict monitoring is essential. Authorities must act swiftly upon receiving any reports of LPG hoarding. 

Market experts have clearly stated that there is no current justification for shortages of petrol, diesel, or LPG cylinders. The country relies on its existing stocks for two to three months, and the impact of the war on international markets may take another two to three months to materialize. Therefore, the present shortage is primarily due to hoarding by industrialists, and no price hikes can be justified in the name of the war. 

The Oil Corporation’s decision to sell half-cylinders (7.1 kg) of gas to manage the shortage has only opened the door to further exploitation. In reality, consumers rarely weigh cylinders at the time of purchase, making it easy to underfill each cylinder and maximize profits. Such a decision ultimately harms consumers while benefiting industrialists. 

It is imperative to break the monopoly held by industrialists in this sector. The government must carry out rigorous monitoring and penalize those who hoard LPG cylinders to create artificial shortages. 

According to the corporation, the daily requirement stands at approximately 2 million liters of petrol and 4.5 million liters of diesel, while the monthly demand for LPG is about 50,000 metric tons—equivalent to 110,000 cylinders per day. Imports are being conducted accordingly, and to date, there have been no issues regarding the quantity of petroleum products imported. 

Supply conditions have reportedly improved compared to the past. Petroleum products are currently being delivered into the country via pipeline at a rate of 300 kiloliters per hour. 

LPG is also being imported at a rate of 100,000 to 120,000 cylinders per day. However, the corporation notes that occasional loading delays at the refinery can result in a shortfall of four to five bullet tanks—equivalent to roughly four to five thousand cylinders—which is made up for the following day. 

It is urged that all consumers remain alert and vigilant regarding any retailers hoarding LPG cylinders in their warehouses. To date, there is no actual shortage of LPG cylinders in the country. If a shortage appears, it is an artificially created one—not a genuine one.

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