Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Cooking gas sales in Nepal will now be limited to half cylinders after supply disruptions triggered by geopolitical tensions in the Middle East and reduced imports from India, according to a decision by the board of Nepal Oil Corporation (NOC).
The state-owned fuel supply company made the decision during a board meeting held on Thursday after determining that the current supply situation cannot sustain full-cylinder distribution across the market.
Under the new directive, LPG bottling plants and distributors will be instructed to fill and sell only half cylinders in order to manage the ongoing shortage and distribute the available supply more evenly among households.
Supply Disruption Hits Nepal’s LPG Market
According to NOC Director Vinit Mani Upadhyay, the decision was taken after LPG imports from India declined sharply in recent days.
“The market was already experiencing shortages, and the situation worsened after tensions in Gulf countries affected supply chains,” Upadhyay said. “Due to the reduced volume coming from India, we have been compelled to implement half-cylinder distribution.”
He added that the corporation will immediately send the board’s decision to LPG bottling industries and distributors to implement the new supply mechanism nationwide.
Government Consultation Before Decision
Before finalizing the move, NOC officials held consultations with Anil Sinha, Nepal’s Minister for Industry, Commerce and Supplies, on Wednesday.
During the meeting, Minister Sinha reportedly instructed the corporation to take necessary measures to address the supply shortage after reports of LPG scarcity began emerging in the market.
Reduced Supply from India
Nepal imports almost all of its cooking gas from India through the supply system operated by Indian Oil Corporation (IOC). The country relies heavily on this cross-border energy trade for its domestic LPG consumption.
Officials say Nepal requires approximately 120 LPG bullet tankers daily to meet national demand. However, IOC has recently been supplying fewer than 80 bullet tankers per day, significantly below the required level.
Despite the decline, IOC has not officially communicated any formal reduction in supply to Nepal.
Growing Shortage Across the Market
The shortage has already started affecting consumers across major urban areas.
In Kathmandu, long queues were reported at LPG depots, including at a distribution center operated by Nepal Gas in the Balaju Industrial Area. Many customers were seen carrying empty cylinders directly to depots in hopes of securing refills.
Energy experts say the supply pressure is likely to continue if geopolitical tensions in the Gulf region persist, as the global LPG supply chain remains highly sensitive to disruptions in energy-producing regions.
Nepal’s LPG demand has been steadily rising in recent years as households increasingly shift toward cleaner cooking fuels, making the country more vulnerable to international supply fluctuations and import bottlenecks.
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