NOC delays revising cooking gas import quota

KATHMANDU:

Nepal Oil Corporation (NOC) — the state-owned petroleum supply monopoly — which was supposed to revise the import quota of liquefied petroleum gas (LPG) for the bottling plants this month has decided to hold off its plan for another fortnight.

The reason behind it is that the bottling plants did not import their full quota in February again and supply in the domestic market is yet to be smooth. The import quota for January and February was 29,002 tonnes each, but the bottling plants imported 26,047 tonnes and 26,055 tonnes, respectively, in each of the months.

NOC has been alleged of distributing LPG quota rampantly even when the bottling plants failed to import their full quota in January and as a result the shortage of cooking gas has prolonged. The Ministry of Commerce and Supplies (MoCS) had increased the import quota for January and February to 29,002 tonnes from 22,377 tonnes initially. NOC has been issuing the import permit, which is also called product delivery order (PDO) for the bottling plants based on the number of cylinders circulated in the market.

As per NOC Spokesperson Mukunda Ghimire, NOC would not make any changes till mid-March. NOC officials expect LPG supply to normalise by then.“We’ve verified the number of cylinders that each bottling plant has circulated and we will adjust the quota accordingly after mid-March,” said Ghimire.

Bottling plants failed to import 5,902 tonnes of LPG from its quota in the last two months. That amount is sufficient to smoothen the supply situation. NOC officials have said that LPG supply is gradually going to be normal as the demand will drop along with the onset of summer season.

Of the 55 bottling plants in total, only eight utilised full quota in importing LPG in February, according to NOC.

Baba Gas failed to import 261 tonnes from its quota in February. The amount that it failed to import is more than the monthly quota of those bottling plants that have less market share.Likewise, 24 bottling plants imported less than 90 per cent of the quota in February.

At a glance

Bottling plant Extended quota (in tonnes) Quota fulfilled (%)

Sri Janaki Gas 571 104.99

Sugam Gas (Sunsari) 118 104.86

Royal Multilook Concern 363 102.71

Ugrachandi Gas Udhyog 277 102.25

Bheri Gas Udhyog 884 101.56

Bottom five

Bottling plant Extended quota (in tonnes) Quota fulfilled (%)

NL Gas Udhyog 559 6.35

Kabsons Industries 107 66.20

Aarati Gas Udhyog 124 71.43

Rapti Gas Udhyog 188 74.57

Nobel Gas Udhyog 457 77.24

Source: THT