More than three dozen gas bottlers in the country had stalled imports from Thursday, arguing that hike in diesel prices over the last few months have raised their transportation cost.[break]
“However, an understanding to this connection has been reached. We will start accepting the supply and resume the import,” said Hari Pathak, president of Nepal LPG Companies´ Association.
The NOC and the gas bottlers reached the understanding during the talks held at the Ministry of Commerce and Supplies (MoCS). Both the NOC and bottlers came to the agreement terms after the ministry formed a committee under Dipak Subedi, joint secretary of MoCS, to study demand of LPG bottlers and make recommendations.
Apart from the transportation cost, the bottlers as well as their retailing hands, termed as LPG dealers, have also pushed the government to raise their profit margin to 5 percent of the retail rates.
However, NOC has refused to fulfill this demand. Currently, the government has set companies´ profit margin as well as dealers´ commission at Rs 28 per cylinder (14.2 kg) each.
“If we fulfill their demand, we will need to raise the margin to Rs 75 per cylinder. This is neither right demand nor the right time to discuss on the matter,” said a senior NOC official.
Nonetheless, with bottlers agreeing to resume imports, NOC officials anticipate the supply of LPG to improve by next week. Amid mounting loss and differences between NOC and bottlers, LPG has been on a short supply since a month ago.
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