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LPG firms, NOC in dispute

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KATHMANDU, June 24: Liquefied Petroleum Gas (LPG) companies and Nepal Oil Corporation (NOC) are in dispute over the latter´s move to regulate the companies´ operations and monitor the cooking gas market by enforcing LPG bylaw. [break]



NOC executive board has already endorsed the bylaw that has for the first time set clear parameters for establishing LPG bottling companies and laid down codes of conduct for gas companies and their dealers.



However, Nepal LPG Industries´ Association (NLPGIA) has flayed the move, saying that the corporation is mere importer of fuel and has no authority to regulate the market. It has demanded the corporation scrap the regulation instantly.



NLPGIA has also forwarded a four-point demand to the corporation and has urged the state-owned petroleum import monopoly to fulfill it by June 28. “If the corporation does not pay heed, we will bring import and retailing of cooking gas to a grinding halt from June 29,” said Sita Ram Timilsina, official of the association.



Officials at the corporation, however, said that they are ready to talk with the association if they have problems with the provisions of the bylaw, but will not scrap the bylaw. Digambhar Jha, the chief of NOC, told myrepublica.com that until the government makes changes, NOC has the authority to monitor the petroleum market. “And we cannot allow them to continue supplying less gas (than the stipulated 14.2 kgs) and circulate substandard cylinders that put consumers´ lives at risk,” he stated.



The bylaw has for the first time tagged short-supplying of gas and circulation of substandard cylinder as serious crimes, and provisioned action as tough as termination of their operating licenses in case companies are found resorting to such practices.



The corporation, however, is open to holding talks on other demands of the association, such as ´no license to new companies´, adjustment of transportation fares while importing gas from farther off refineries including Haldiya and Mathura.



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