Cooking Gas Shortage Monitoring Intensified
10th February 2026, Kathmandu
In early February 2026, the Department of Commerce, Supplies, and Consumer Protection (DoCSCP) intensified Cooking Gas Shortage Monitoring across the Kathmandu Valley. This regulatory surge was triggered by widespread reports of artificial scarcity, where consumers struggled to find Liquefied Petroleum Gas (LPG) despite official claims from the Nepal Oil Corporation (NOC) that the national supply remains adequate.
Cooking Gas Shortage Monitoring
As of February 10, 2026, joint monitoring teams—including representatives from the DoCSCP, the Nepal Oil Corporation, and the Nepal Bureau of Standards and Metrology—have been deployed to major distribution hubs to crack down on hoarding and black marketing.
The Conflict: Supply Data vs. Market Reality
The current crisis highlights a significant disconnect between the state-owned oil monopoly’s statistics and the ground reality for households.
NOC’s Position: The Nepal Oil Corporation maintains that there is no nationwide shortage. In January 2026, Nepal imported 47,304 metric tonnes of LPG, following 48,531 tonnes in December 2025. These figures are technically sufficient for winter demand.
The Reality: Consumers in areas like Kirtipur, Kalanki, and Balaju have reported “No Stock” signs at retailers for over two weeks. Brands like Nepal Gas, which holds a 20 percent share of the Kathmandu market, have been particularly scarce.
Causes of the Artificial Scarcity
Monitoring efforts have identified several factors contributing to the current “hollow” market, where gas exists in the system but not in the kitchens:
Refinery Maintenance: In late January, India’s Barauni Refinery, Nepal’s primary source, underwent a 10-day maintenance closure. While NOC sourced gas from the Paradip Refinery as an alternative, the longer transport distance created a 3-to-4-day lag in the supply chain.
Transport Logistics: Transporters reportedly diverted tankers to domestic Indian routes that offered higher freight rates during the winter peak, reducing the number of bullets entering Nepal by nearly 25 percent.
Election-Driven Demand: With the March 5, 2026, General Elections approaching, there has been a significant uptick in bulk consumption for political rallies and catering, further straining the regular household supply.
Panic Hoarding: Rumors of a blockade or severe shortage led households with multiple cylinders to refill all of them simultaneously, effectively removing thousands of cylinders from circulation.
Intensified Monitoring and Penalties
Under the “Sakar” strategy for consumer protection, the Department has authorized on-the-spot disciplinary actions.
1. Market Surveillance Teams
Four specialized teams are currently conducting “mystery shopping” and warehouse audits in locations like Gongabu Bus Park, Koteshwor, and Bhaktapur. They are inspecting large-scale dealers to ensure they are not prioritizing “new cylinder sales” over “refill exchanges”—a common malpractice where dealers refuse to refill old cylinders to force consumers into buying a new set for up to NPR 4,800.
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2. Legal Consequences
The Department has issued a clear warning that any business found hoarding or creating a cartel will face:
Cash Fines: On-the-spot fines of up to NPR 300,000.
License Suspension: Immediate halt of the Purchase Delivery Order (PDO) for bottling plants that fail to distribute their quota.
Prosecution: Charges under the Consumer Protection Act, 2018, which can lead to imprisonment for severe cases of black marketing.
Government Response and Mitigation
To stabilize the market before the March elections, the government has introduced several emergency measures:
Additional Quota: The NOC has requested an additional 2,000 metric tonnes of LPG from the Indian Oil Corporation (IOC) for February to create a buffer.
Brand-Specific Directives: Bottlers of scarce brands, particularly Nepal Gas, have been ordered to prioritize the Kathmandu Valley and increase their daily “bullet” clearances from customs to 90 units (up from the average of 75).
Public Grievance Hotline: The Ministry of Commerce has revitalized its hotline (01-4200052) for consumers to report retailers who demand “extra charges” or refuse to provide a bill.
Economic and Social Impact
The scarcity is most acutely felt by the student population and low-income workers in Kathmandu, many of whom own only a single cylinder. When a single-cylinder household is denied a refill, it effectively shuts down their ability to cook, forcing them toward expensive restaurant meals or unhealthy alternatives.
Furthermore, the lack of transparency in pricing—where some retailers are reportedly charging NPR 200 to NPR 500 above the fixed rate for “priority delivery”—is adding an uncalculated inflationary pressure on the average Nepali household.
Conclusion
The Cooking Gas Shortage Monitoring of 2026 is a critical test for Nepal’s regulatory agencies. While the 49,500-tonne quota for February should technically end the crisis, the challenge lies in breaking the “distribution cartel” and stopping the panic-buying cycle. As long as internal disputes among bottlers and transport hurdles in India persist, the government’s ability to enforce fair trade at the local retail level will remain the deciding factor in whether the hearths of Kathmandu stay lit.
For More: Cooking Gas Shortage Monitoring
