NOC’s bid to address LPG shortage

KATHMANDU, MAR 13

Nepal Oil Corporation ( NOC ) plans to insert a provision in the bylaws relating to liquefied petroleum gas ( LPG ) which will require gas bottlers to obtain its permission before selling new gas cylinders. The present Bylaws 2009 states that bottlers only have to report to NOC when issuing new cylinders.

“We have decided to amend the rule due to criticism that the LPG shortage has persisted for the last three months because bottlers have been treating it as an opportunity to press their dealers to sell new cylinders,” said NOC Spokesperson Mukunda Ghimire.

Consumers are being forced to buy new cylinders at more than Rs 5,000 each if they want to get LPG . In contrast, refilling an LPG cylinder costs Rs 1,470.   

Ghimire said that amending the bylaws would allow NOC to take action against errant gas dealers. “The current bylaw is silent on the action to be taken against bottlers and gas dealers found to be engaged in bad market practices,” he said.

Ghimire said that if bottlers had to take permission to sell new cylinders, it would be easier for NOC to track them and the numbers of cylinders circulating in the market. “It will also allow us to seize the cylinders if we catch dealers selling more than the permitted number.”

Apart from requiring permission to sell new cylinders, NOC said it would be introducing a provision in the bylaws relating to certification of gas dealers. If the new rule is endorsed, gas retailers will have to obtain a separate licence to sell LPG . Similarly, retailers will be required to weigh the gas cylinders before delivery.

Earlier, the Department of Commerce and Supplies Management had instructed LPG sellers to obtain certification from it. According to department officials, the mandatory provision of getting certification would discourage unregistered retailers and those making hefty profits by selling new LPG cylinders.

Likewise, the bylaws will lay down the standards for LPG bottlers.

Ghimire said that they had planned to focus on making bottling plants maintain safety standards.

The current bylaws only mention the procedures that bottlers have to follow while obtaining purchase delivery orders to import LPG . It does not specify what safety measures bottlers have to maintain at their plants.  

There are 54 bottling plants operating across the country. Although the bylaws state that they have to maintain the standards set down by NOC , many of them are reported to be disregarding the rule.

The current regulation has mentioned that bottlers have to clearly mention the date the gas cylinders were last tested.

Similarly, bottlers should conduct a hydrostatic test besides cleaning the cylinders every five years. It also requires them to test the valve of the cylinders and bars them from refilling the cylinders of other companies.

Ghimire said NOC would take stern action against gas companies flouting the rules.

Source: The Kathmandu Post