KATHMANDU, Oct 28: The Nepal Oil Corporation (NOC) has again directed liquefied petroleum gas (LPG) industries to ensure that dealers and retailers issue value-added tax (VAT) bills to consumers when selling cooking gas. The corporation has warned of strict action against those who fail to comply.
Complaints have increased that some sellers are charging consumers higher prices, citing transportation difficulties caused by road obstructions following floods and landslides.
Following the complaints, the NOC’s LP Gas and Aviation Department sent letters to all concerned gas industries, instructing them to ensure that dealers and retailers issue VAT bills for every sale. Department Director Engineer Binitmani Upadhyay said the corporation issued the directive after receiving complaints that sellers were failing to provide invoices after selling gas.
The corporation said it had previously written to gas industries and sellers’ associations, instructing them to issue bills for all LPG sales. However, as the instructions were largely ignored, the corporation had to issue another directive to ensure implementation. It had sent similar letters on August 14, 2024, and February 22, 2025.
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The NOC has fixed the price of a cooking gas cylinder at Rs 2,060. However, consumers have complained that some sellers charged between Rs 2,700 and Rs 3,000 per cylinder during shortages and failed to provide bills.
The corporation expects mandatory VAT bills to help maintain proper transaction records, verify sales details and clarify the responsibilities of sellers and distributors.
Bills also allow consumers to keep proof of the price paid and the transaction. They can serve as useful evidence if disputes arise over prices, sales details or other aspects of a purchase.
Focus on Consumer Protection
As cooking gas is an essential household commodity, transparency in its sale and distribution is necessary. Providing bills enables consumers to retain proof of their purchases and helps address disputes over prices and transactions.
The mandatory billing system is also expected to help reduce irregularities, consumer fraud and the risk of black marketing. However, consumer rights activists argue that effective implementation will require regular monitoring by the concerned authorities.
The NOC has urged gas industries to monitor and regulate the activities of their dealers and retailers to ensure that the directive is fully implemented.
Meanwhile, the Gas Dealers Federation Nepal (GDFN), the umbrella organization of private-sector LPG dealers, has welcomed the decision and pledged to implement the new provision.
In a statement issued on Wednesday, GDFN President Gyaneshwor Aryal said the federation had also been advocating for mandatory billing to make LPG transactions more transparent, systematic, and secure.
