Ministries told to become strict with LPG bottlers

Mon, Apr 6, 2015 12:00 AM on Others, Others,

KATHMANDU, APR 06

The Commission for the Investigation of Abuse of Authority (CIAA) has directed the government ministries concerned to ensure that liquefied petroleum gas (LPG) bottlers issue a receipt for the deposit customers pay while purchasing new gas cylinders.

Bottlers have been taking a deposit charge of Rs2,000 to Rs2,500 per cylinder on top of its price but not issuing a receipt. The CIAA has also received complaints that bottlers have been taking a high deposit charge.

Prompted by the flood of grievances, the anti-graft body has directed the Finance, Industry and Commerce ministries to ensure that bottlers issue a receipt for the money paid by LPG customers.

Meanwhile, the CIAA has mentioned in its letter sent a week ago that LPG bottlers have been showing the cylinders as the company’s assets on its balance sheet even though they have been bought by the customers besides paying a hefty deposit for them.  

 The CIAA has also asked the ministries to implement a provision under which customers can get back their deposits any time they want.

Currently, customers can get their deposits back only after the bottling company closes down. “At the time of accepting the deposit, the companies should clearly state the conditions and the amount that customers will get back,” said the CIAA in its letter.  

Besides regulating the deposit and prices of new LPG cylinders, the CIAA has asked the government ministries to manage a proper mechanism requiring LPG bottlers to maintain the standard for cylinders.

The CIAA has also sought the opinion of Nepal Oil Corporation (NOC) whether it would be better for it to fix the price of new LPG cylinders. It has also shown its concern on lack of uniformity in the reports on gas distribution submitted to NOC and the tax office.

Similarly, the CIAA has asked NOC to implement a work plan to make gas companies maintain the LPG cylinders. It has also sought NOC’s intervention to make bottlers install the devices used to carry out hydraulic testing and remove residues inside cylinders.

Due to lack of a provision to issue receipts for the deposits, customers are reportedly being made to pay Rs2,000 to Rs2,500 as a deposit charge while purchasing new cylinders. NOC Spokesperson Mukunda Ghimire said LPG customers were facing problems due to lack of receipts.

According to him, NOC has started amending the bylaws related to LPG sales requiring the deposit to be paid through banks.

Chandra Thapa, general secretary of the Gas Dealers’ Federation Nepal, said customers were not getting back their deposits although the regulation states that they should get back the money when they return the gas cylinders.

 “As a result, many households have been complaining that they were overstocked with old cylinders,” he said.

Source: The Kathmandu Post