Industry Secretary States No Real Gas Shortage, Cites Distribution Issues

Kathmandu. Industry, Commerce and Supply Ministry Secretary Narayan Prasad Sharma Duwadi has said that there is no real shortage of gas in the market. He clarified that the shortage was created due to problems in the distribution system. He said this on Tuesday during a discussion on gas supply management in the Industry, Commerce and Labour and Consumer Interest Committee. He informed that most consumers did not get gas filled during the distribution of half cylinders. He stated that when full 14 kg cylinders started being distributed, the distribution system was strained as cylinders arrived in the market simultaneously. He said that 2.3 million cylinders were not refilled in the last three months. Analyzing the data of the last three months, he mentioned that out of at least 7 million cylinders that should have come to the market, only 5.4 million cylinders were refilled and distributed. He claimed that the demand increased unusually when a large number of cylinders came to the market at once after starting the distribution of full cylinders from half cylinders. He said that the demand for gas, which was around 46 to 47 thousand metric tons per month previously, has now increased to about 60 thousand metric tons. He also informed that he had requested the Indian Oil Corporation to provide additional supply for at least one to one and a half months. He said that although a full supply of 60 thousand metric tons is not currently available, arrangements have been made to supply about 50 thousand metric tons of gas. During the discussion, he said, 'It was observed that out of at least 7 million cylinders that should have come to the market, only 5.4 million cylinders were refilled and came to the market.' He added, 'Looking at the data for these three months, about 2.3 million cylinders could not be refilled.' Regarding the reason why gas cylinders could not be fully refilled, he said, 'When we came to full cylinders, all those gas cylinders came to the market at once.' He further clarified, 'During the half-cylinder period, the demand was around 46 thousand metric tons. Data from previous years also shows that the demand has remained in this range.' Regarding the increased market demand, he said, 'When we went from half cylinders to full cylinders, the demand went up significantly. The demand seems to have reached about 60 thousand metric tons now.' Regarding future supply, he said, 'We have requested the Indian Oil Corporation to provide additional gas supply for at least one to one and a half months. Currently, the full 60 thousand metric tons has not been met, it is about 50 thousand metric tons.' Presenting the data, he said, 'Even 50 thousand metric tons is more than the same month of previous financial years. By July 19, 31 thousand metric tons of gas has already arrived.' Regarding market management, he said, 'This data shows that the quantity of gas is not inexplicably insufficient. The issue of supply and circulation within the market needs to be managed.' Mentioning that 31 thousand metric tons of gas has entered Nepal by July 19, he said that gas will still be in shortage for some time. According to him, there is no major problem with gas in 41 districts. Some problems have been observed in 28 districts, and about eight districts require special management and monitoring, he said.