Because of the strike, not a single container of LPG entered the country on Tuesday. However, it did not affect supply in the market, as companies continued sales by refilling the stock they possessed.
Following the LPG companies decision to halt gas imports, NOC has initiated talks with the companies to end the problem.
The differences between LPG companies and the corporation surfaced after the latter sought increment in purchase delivery order (PDO) rate - at which the NOC allows companies to import -- by slashing subsidy pledges on transportation cost.
“We pushed for a cut in transportation subsidy because the price of diesel has now dropped to Rs 55 a liter from Rs 70 when it was last adjusted,” Ramesh Koirala, deputy director at NOC, told myrepublica.com.
However, gas companies vehemently protested the change. They even blamed that the move of the corporation was aimed at not implementing the extra subsidy coverage of Rs 10 per cylinder that they won through strike last month.
Through its protests in June, Nepal LPG Industries Association (NLPGIA) had managed to raise its profit margin by Rs 7 and commission to gas dealers by Rs 3 per cylinder.
The association officials -- referring to the agreement that NLPGIA signed with a committee of Ministry of Commerce and Supplies (MoCS) -- stated that the NOC was required to deduct the PDO rate (i.e. increase the subsidy rate) by Rs 10 per cylinder.
“But, the NOC never adjusted the rate. And now when we pushed for the adjustment, it suddenly demanded adjustment in subsidy amount on transportation cost,” said an official of NLPGIA.
Koirala, however, stated that the fare adjustment move of the corporation was judicious as well. “The companies are opposing it because, if the rate is adjusted, it will raise PDO price (shrink subsidy amount) by Rs 11 per cylinder,” said he.
The two sides sat for talks on Tuesday after Supplies Ministry intervened into the case and instructed the corporation to end the stalemate. However, as both the sides stood rigid on their stances, no breakthrough was reached till evening.
Nepal consumes 400 tons of LPG every day and two third of it is consumed in the Kathmandu Valley alone. Though there are some two dozen companies operating in the country, their stock barely ensures supply for a week.
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