header banner

NOC, LPG companies lock horns over bylaw

alt=
By No Author
KATHMANDU, June 28: In an attempt to avoid strike from Liquified Petroleum Gas (LPG) companies, Nepal Oil Corporation (NOC) has proposed to postpone the enforcement of LPG Bylaw, which restricts companies from circulating short-filled and substandard cylinders. [break]



However, Nepal LPG Industries´ Association (NLPGIA) rejected the proposal and pressed the corporation to scrap the new regulations that for the first time lay down code of conduct for the operation of the gas bottlers.



The association even reiterated its previous warning of bringing imports and retailing of cooking gas to a grinding halt from June 29, if the corporation did not meet its four-point demand.



The association has asked the corporation to scrap the new bylaw, stop issuing bottling licenses to new companies, allow the association to set import quotas for the companies and review transportation fares while importing gas from distant refineries like Haldiya and Mathura in India.



During the talks held between the two sides on Friday, NOC agreed to negotiate on reviewing the transportation fares for the companies. However, it straightaway rejected the two demands -- allowing the association to set import quotas for the companies and stopping import licenses to new companies -- of the association.



"Both these demands go against the basic norms of free market and broader economic policy of the government. There is no way we can meet them," said a government official who took part in the talks.



As for the issue of the bylaw, the corporation called the companies to negotiate on the provisions in it if they had any problem with it, rather than invalidating it. However, company men stood firm on their demand.



The bylaw stands as a bone of contention, mainly because it has tagged short-supplying of gas and circulation of substandard cylinder as a serious crime, and provisioned action as tough as termination of their operating licenses in case companies are found resorting to such practices.



"To end the stalemate, nonetheless, we proposed them that we will postpone its enforcement. Still the association officials refused," said an NOC official.



Related story

NOC makes profit in LPG after a year, earns Rs 1.6 billion in j...

Related Stories
SPORTS

Patriots to lock horns with Rhinos in elimination

Patriots to lock horns with Rhinos in elimination
SOCIETY

NTA seeks suggestions from stakeholders to amend C...

NTAcybersecurity_20230802151929.jpg
ECONOMY

NOC charges customers fee on oil, LPG to make fund...

NOC_Sept2.jpg
ECONOMY

Import of LPG sees a decline

LPGcylinder_20230324204531.jpg
ECONOMY

24 companies preparing to issue IPOs worth Rs 6.5...

ipo_20210108082652.jpg