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Remove LP gas from NOC's jurisdiction, rights body tells govt

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KATHMANDU, April 1: National Consumer Forum (NCF) has suggested to the government to form a separate entity under the Department of Supply Management and Consumer Protection (DoSMCP) to oversee distribution of liquefied petroleum (LP) gas.

NCF's suggestion has come at a time when Nepal Oil Corporation (NOC) has been drawing flaks from all quarters for its ineffective distribution mechanism which has made LP gas scarce.LPG distribution is under the ambit of NOC. However, it is not involved in transaction of LP gas like diesel, petrol, kerosene and Aviation Turbine Fuel (ATF). It issues Product Delivery Order (PDO) to LP gas industries which import gas from India, bottle them and distribute cylinders through dealers.

Giving 18-point suggestion to a government committee formed to study import management of LP gas (storage, supply and distribution mechanism), NCF said that import and distribution of LP gas has to be done by DoCSMP itself.

NCF has suggested forming a high-level committee or mechanism under DoSMCP which shall be responsible for import, distribution, rate fixation, and monitoring of LP gas in the market. The committee will also be responsible for implementing automatic pricing mechanism for LP gas and function as the highest authority for issues related to LP gas.

Similarly, NCF has also suggested to the government to direct LP gas bottlers to develop infrastructures prescribed by Export and Import (Control) Act, 2013, giving them a certain timeframe. It has also urged the government to take needful action against those bottlers who fail to develop infrastructures within the given timeframe.

NCF has also suggested to the government to separate guideline to systematize import, storage and distribution of LP gas. Among others, it has urged the government to circulate separate cylinders for commercial and household consumers, and introduction consumer cards to make LP gas distribution more effective.

Prem Lal Maharjan, president of NCF, said they have also suggested to the government to form a high-level Price Adjustment Committee and authorize it to fix price of petroleum products under automatic fuel pricing mechanism.



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