Dual Cylinder System : Govt amends Nepal Standards Act

KATHMANDU, DEC 07 -

The government on Thursday approved new standards and specifications for colour-coded (red and blue) liquefied petroleum gas ( LPG ) cylinders by amending the existing Nepal Standards (certification mark) Act.

The government also allowed supply and sales of LPG cylinders in three sizes and capacities, targeting commercial, household and low-end consumers.

A meeting of the Nepal Standard Council (NSC) chaired by Industry Minister Anil Kumar Jha approved the revised regulation. The NSC consist members from 11 different ministries and numbers of private sector representatives.

The colour-coded cylinder provision will now enable traders to produce, sell and supply cylinders by segregating them into blue and red colours. Blue cylinders will be used for commercial purpose and red for household purpose.

Under the revised cylinder capacity specification, the government has allowed traders to supply 5kg, 14.2kg and 19kg LPG cylinders. As of now, only 14.2kg cylinders were allowed to sell in the market.

The government had long been working to introduce cylinders in different sizes and capacities in order to enable consumers to purchase cylinders as per their need. The government plans to supply 5kg cylinders for low-end consumers.

“Necessary amendments to the Nepal Standards have been made to particularly enforce colour-coded cylinder system,” said Ram Adhar Sah, director general at the Nepal Bureau of Standards and Meteorology.

The government had planned to introduce colour-coded cylinders a year ago, but the plan flailed thrice after bottlers opposed the move, stating the need for amending the regulation first.

By enforcing the system, the government plans to regulate LPG distribution and enable the Nepal Oil Corporation to sell blue cylinders at the cost price. It also wants to end VAT refund privileges provided to industrial users and subsidise the commodity for certain targeted groups.

Source: The Kathmandu Post