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NOC to set uniform price for empty LPG cylinders

August 26, 2018

Kathmandu, August 24

Nepal Oil Corporation (NOC) is gearing up to maintain uniformity in the price of empty liquefied petroleum gas (LPG) cylinders by determining the same price for all available LPG cylinders in the domestic market.

In the backdrop of price variations in empty LPG cylinders of different brands, which has been affecting consumers while exchanging LPG cylinders of one brand with another, the state-owned fuel supplier is preparing to fix a common price of empty LPG cylinders of all brands based on their actual production cost.

Currently, four cylinder manufacturers namely Nepal Cylinder Ltd, Subha Laxmi Metal Ltd, Griha Laxmi Metal Ltd and Aerotex Ltd have been supplying LPG cylinders to 55 domestic cooking gas bottlers. The prices of empty LPG cylinders, however, differ depending upon the manufacturer, even as these cylinders have same metal composition and weight.

As per the statistics collected by NOC, Nepal Cylinder Ltd and Griha Laxmi Metal Ltd have been charging Rs 2,067.90 and Rs 2,135. 70 per cylinder, respectively. Meanwhile, Aerotex and Subha Laxmi Metal Ltd have been charging Rs 2,080 and Rs 2,200 per cylinder, respectively.

“As a result of varying price of LPG cylinders despite common production cost, consumers are obliged to pay additional money while changing the brand of their LPG cylinders,” informed Sushil Bhattarai, acting deputy managing director of NOC, adding that the corporation will soon determine the actual production cost of one LPG cylinder and fix its price accordingly.

However, gas bottlers and manufacturers are against NOC’s plan to determine a common price for LPG cylinders citing that the price of metal keeps changing, thereby altering the production cost of LPG cylinders. “NOC should reconsider its plan,” said Gokul Bhandari, managing director of Nepal Gas Ltd.

Meanwhile, Bhattarai of NOC said that the logic of manufacturers and gas bottlers will be cross-checked before implementing the plan. “If that is the case, we will adjust the price of LPG cylinders every month or at least every three months,” added Bhattarai.

As per NOC’s statistics, more than 10 million LPG gas cylinders are in circulation in the domestic market at present.

Source: Himalayan Times