Nepal Tackles Gas Shortages with Supply Chain Reforms and Pipeline Development

Nepal is struggling to meet its demand for LPG gas due to frequent road blockades and natural disasters. To address this issue, stakeholders have come together to implement supply chain reforms and infrastructure development.

The Nepal Oil Corporation (NOC) has increased daily imports of gas from India, with up to 162 bullets being loaded per day. The corporation is also utilizing a 'Quick Response Team' (QRT) to prevent artificial scarcity and black marketing in the market.

One major issue contributing to the shortage is the misuse of subsidies by commercial establishments. To address this, the government plans to separate domestic and commercial cylinders, with separate prices for each. This will reduce the corporation's annual financial losses of billions of rupees.

In the long term, the government aims to construct a gas pipeline from India to Nepal, which is estimated to cost around 15 billion rupees. This project would provide a permanent solution to the problem and save Nepal from sending over 6 billion rupees annually to India as transportation fees.