LPG companies end strike, resume imports

KATHMANDU, July 29: Agitating liquefied petroleum gas (LPG) companies called off their strike and resumed import of cooking gas on Wednesday after Nepal Oil Corporation (NOC) agreed to increase subsidy, which it had pledged to the company, enabling them retail gas at state-administered rate. [break]



The agreement straightway slashed the import rate for gas companies by Rs 10 per cylinder (14.2 kg).



“We have started accepting purchase delivery order (PDO) for fresh imports and also distributed gas in the market,” said Sabarmal Agrawal of Nepal LPG Industries Association (NLPGIA), announcing withdrawal of companies´ strike.



The two sides reached into an understanding after the NOC agreed to instantly implement new PDO rate, as worked out by the Ministry of Supplies team last month. Also, the two sides agreed to hold further negotiations on the issue of slashing the transportation subsidy, which the NOC pushed.



“A six-member committee has been formed to negotiate on the issue,” said NOC spokesperson, Mukunda Dhungel.



During the negotiation, the NOC also agreed to reimburse additional transportation cost that the companies incurred while importing gas from Mathura and Haldiya, the distant refineries of Indian Oil Corporation.



The dispute between the LPG companies and the NOC surfaced after the latter sought a cut in subsidy it pledges on the transportation cost, referring to the drop in diesel price from Rs 70 to Rs 55 per liter. The gas companies, however, had vehemently protested the change.

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