Prices of gas bottled in both types of cylinders will, however, remain same for now, according to the Ministry of Commerce and Supplies (MoCS). [break]
MoCS Spokesperson Deepak Subedi said that the ministry would strictly implement its decision to circulate dual color cylinders.
For this, the ministry has asked gas bottling companies to start distributing cards to users of different types of cooking gas cylinders.
“Gas bottling plants that do not issue cards to customers will not be entitled to product delivery order,” the ministry has said.
The government´s latest attempt is aimed at ensuring that the subsidy extended on liquefied petroleum gas does not go to entities using the fuel for business purpose.
Currently, the government is extending subsidy of Rs 439.50 on every LPG cylinder (14.2 kg) priced at Rs 1,470. At this price, the government bears a loss of Rs 363 per cylinder.
“To recover this loss, we will be fixing different prices for gas bottled in red and blue cylinders after two months,” said Suresh Agrawal, officiating executive director of state-owned Nepal Oil Corporation (NOC).
This means the price of gas distributed in blue-colored cylinder will cost more, while the fuel bottled in red cylinders will be subject to government subsidy.
However, those who want to purchase subsidized cooking gas will not be able to do so unless they produce a card issued by NOC.
The MoCS and NOC are currently working on simplifying procedures for implementation of dual-color cylinders effectively so that consumers, who use the gas for household purpose, do not face hassles.
In this regard, the MoCS has also requested consumers, dealers and gas entrepreneurs to cooperate with the government and NOC.
As of now, there are 958,671 cooking gas users in the country, of which 502,371 reside in Kathmandu Valley.
Currently, 1.3 million cooking gas cylinders are in circulation in the market. Of these, 60 percent are used for household purpose.
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