LPG Supply Eases Marginally as Imports Rise, Market Inspections Intensify

KATHMANDU; Nepal Oil Corporation (NOC) has said LPG supplies have improved following a rise in imports and intensified government action against black-market sales.

Binit Mani Upadhyaya, director of the LPG Department at NOC, claimed that the supply situation in the domestic market has improved with increased imports. According to him, Nepal is currently importing more than 100 LPG bullets daily from Indian Oil Corporation (IOC) refineries.

NOC data show that LPG imports declined by around 50,000 tonnes during the final four months of fiscal year 2025/26 after the government introduced a system of supplying half-filled cylinders amid the US-Iran conflict in the Middle East. Nepal normally imports around 46,000 tonnes of LPG each month.

The supply situation worsened after the government resumed distribution of fully filled cylinders. However, imports have picked up in the current fiscal year, reaching 44,318 tonnes in the first 22 days of FY 2026/27. NOC estimates that imports could reach 54,000–55,000 tonnes by the end of the first month.

Upadhyaya said NOC has also requested Indian authorities to increase Nepal’s LPG import quota, particularly in view of rising demand during the upcoming festival season.

Meanwhile, authorities have stepped up market inspections to curb black-market sales and overpricing of LPG.

Last week, the Department of Commerce, Supplies and Consumer Protection fined Everest Mart Store Pvt. Ltd. in Thahiti, Kathmandu, Rs 200,000 after finding the outlet selling LPG above the government-set price.

Similarly, District Police Range, Bhaktapur, arrested shopkeeper Tulsi Ram Twayana on Saturday for allegedly charging customers excessive prices for LPG. Twayana, who operates Twayana Grocery Shop in Duwakot, Changunarayan Municipality-2, was reportedly selling LPG cylinders for as much as Rs 7,000 each.

NOC officials said increased imports, together with stricter market monitoring and action against illegal pricing, are expected to further stabilize LPG supplies across the country.