Nepal Oil Half Cylinder Gas Sale Policy Begins
13th March 2026, Kathmandu
The Nepal Oil Corporation (NOC) has officially transitioned to a half-cylinder distribution policy for Liquefied Petroleum Gas (LPG) effective Friday, March 13, 2026.
Nepal Oil Half Cylinder
Under this new directive, all domestic cooking gas cylinders will be refilled with 7.1 kilograms of LPG instead of the standard 14.2 kilograms. This measure, approved during a board meeting on Thursday, is a strategic response to surging demand and widespread panic buying triggered by ongoing geopolitical tensions in the Middle East and their impact on global energy supply chains.
Rationale for the Rationing System
The decision to implement half-cylinder sales is primarily a preventive measure aimed at stabilizing the domestic market. While the NOC has confirmed that imports from the Indian Oil Corporation (IOC) remain regular—with approximately 45,000 to 46,000 tonnes arriving monthly—consumer anxiety has led to a significant increase in hoarding.
Key factors influencing this policy include:
Panic Buying: Reports of energy disruptions in the Middle East and a potential fuel crisis in neighboring India have led Nepali households and commercial businesses to stockpile extra cylinders.
Artificial Shortage: Although supply volumes are normal, the sudden rush to purchase multiple cylinders has depleted retail stocks, creating long queues at depots across the Kathmandu Valley and other urban centers.
Supply Chain Resilience: By halving the volume per cylinder, the NOC can effectively double the number of households served by the same amount of gas, ensuring that the available supply reaches a broader section of the population.
Pricing and Distribution Details
To ensure the transition is fair for consumers, the pricing for the half-filled cylinders has been set at exactly 50% of the current full-cylinder rate.
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Weight: 7.1 kg of LPG per cylinder.
Price: 955 rupees per half-filled cylinder (based on the current full price of 1,910 rupees).
Applicability: The rule applies to both individual household users and commercial entities like hotels and restaurants.
The NOC has instructed all LPG bottling plants and authorized distributors to strictly adhere to this refilling standard until further notice.
Encouraging Energy Diversification
Alongside the rationing of cooking gas, the government and the NOC are strongly advocating for a shift toward domestic energy sources. With Nepal’s hydropower capacity continuing to grow, citizens are being urged to increase the use of electric induction stoves and other electric kitchen appliances. This transition is viewed as a long-term solution to reduce the country’s complete dependency on imported fossil fuels and to insulate the domestic economy from international price shocks.
Market Monitoring and Compliance
The Department of Commerce, Supplies, and Consumers Protection (DoCSCP), in coordination with the NOC, has intensified market monitoring to prevent illegal activities. Authorities have issued stern warnings against:
- Hoarding: Storing multiple cylinders beyond immediate household needs.
- Black Marketing: Selling gas cylinders at prices higher than the government-mandated rate.
- Illegal Sales: Trading new or unauthorized cylinders during the rationing period.
Consumers are encouraged to cooperate with the new arrangement and report any irregularities at local retail shops or distribution depots to the authorities.
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