Bottlers unlikely to get more LPG quota
KATHMANDU:
At a time when gas bottlers in the country have been demanding for more quota for liquefied petroleum gas (LPG), things are getting more difficult for Nepal Oil Corporation (NOC) as Indian Oil Corporation (IOC) — the sole supplier of petroleum products to NOC — recently said that it will supply a large chunk of the cooking gas from Haldia of West Bengal instead of from Barauni refinery of Bihar state due to increased demand of its own.
Barauni is the nearest refinery from Nepal and NOC officials have said that the cost of ferrying LPG would increase if imports have to be made from Haldia. It is reported that it takes up to a week for a LPG loaded bullet to arrive in Nepal from Haldia, whereas travel time from Barauni is only three days.
Currently, the country is importing cooking gas from Barauni, Haldia, Mathura and Panipat refineries of IOC. Barauni supplies 12,000 tonnes, Haldia (6,000 tonnes), Mathura (4,000 tonnes) and Panipat (1,000 tonnes).
“The letter sent to NOC recently has mentioned that IOC will supply only 4,000 tonnes from Barauni, 13,000 tonnes from Haldia, 4,000 tonnes from Mathura and 2,000 tonnes from Panipat from November 11 of this year,” Mukunda Ghimire, spokesperson for NOC, told The Himalayan Times, adding, “In this context, it is hard to increase the quota for bottlers as per their demand of 30,000 tonnes per month.”
Bottlers associated with Nepal LP Gas Industry Association were in protest against NOC before the Dashain festival demanding more LPG quota, citing increasing demand across the country. To end the protest, the Ministry of Commerce and Supplies (MoCS) had formed a study panel three weeks ago, under the coordination of Undersecretary Deepak Raj Pandey, to submit a report on scientific quota for bottlers.
The study panel comprises two representatives from Nepal LP Gas Industry Association and three officials from NOC. The panel, which has identified problems on existing distribution system, will submit its report to the MoCS on November 15.
“At present, NOC has been issuing product delivery order (PDO) for 23,000 tonnes of LPG per month to the 54 gas bottlers of the country based on the number of cylinders, but the bottlers have not been importing more than 18,000 tonnes a month,” said Pandey, adding, “It is unlikely we will recommend for an increase in quota.”
Citing the current import scenario and the increased cost of transportation, Pandey further said that bottlers should consider and better manage supplies from the existing quota.
However, gas bottlers have said that NOC has not reviewed the quota for the last three years.
“We have circulated altogether 5.5 million cylinders in the market,” said Kush Prasad Malli, general secretary of Nepal LP Gas Industry Association, adding, “In the last three years, the number of cylinders has increased by one million units.”
He also said that there is no option other than to increase the quota to meet the current demand, which is increasing each year.
Source: THT
