LPG Gas Illegal Trade Nepal Warning Issued by Department

17th March 2026, Kathmandu

The Department of Commerce, Supplies, and Consumer Protection has issued a high-priority alert regarding LPG gas illegal trade in Nepal.

LPG Gas Illegal Trade

This warning comes in response to reports of artificial shortages and black marketing of cooking gas across the country. To protect consumers and ensure market stability, authorities have intensified monitoring and established a nationwide hotline for reporting irregularities.

Mandatory Reporting of Illegal Practices

The Department is urging the public to be vigilant and report any of the following activities:

• Gas Hoarding: Deliberately hiding cylinders in warehouses to create a supply gap.
• Artificial Scarcity: Claiming “no stock” when cylinders are available.
• Overpricing: Selling cylinders above the government-regulated rate.
• Irregular Distribution: Favoritism or unauthorized sales channels.

Hotline Information:

Citizens can report these activities through the toll-free number 1137. Public reports are essential for identifying hidden warehouses and penalizing dishonest traders.

Nepal Oil Corporation’s Half-Cylinder Policy

In a strategic move to curb panic buying and prevent hoarding, the Nepal Oil Corporation (NOC) has authorized the sale of half-filled LPG cylinders. This policy, effective from March 13, 2026 (Chaitra 1, 2082), is a temporary measure designed to double the reach of the current gas supply.

Key details of the half-cylinder distribution:

Quantity: 7.1 kg of gas per cylinder (Standard is 14.2 kg).

Regulated Price: NPR 955 per half-filled cylinder.

Reasoning: Geopolitical tensions in the Middle East and the closure of the Strait of Hormuz have caused global supply concerns, leading many households in Nepal to stockpile gas.

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Enforcement and Legal Penalties

The government has adopted a zero-tolerance policy toward the LPG gas illegal trade in Nepal. Under the Consumer Protection Act, 2075, violators face severe legal consequences, including heavy fines and imprisonment.

Recent Enforcement Action:

In a significant crackdown, the Department recently fined Shriram Gas Industry NPR 300,000. Monitoring teams discovered 6,377 cylinders (14.2 kg each) concealed in a warehouse in Harisiddhi, Lalitpur. These cylinders have since been confiscated and are being distributed under the coordination of the NOC to ease the local shortage.

Current Market Situation and Consumer Advice

Despite the NOC’s assurance that imports from the Indian Oil Corporation (IOC) remain regular at approximately 45,000 metric tonnes per month, panic buying has created long queues at depots, particularly in the Kathmandu Valley.

Authorities recommend the following to consumers:

Purchase Only Necessities: Avoid buying multiple cylinders to allow fellow citizens access to fuel.

Switch to Induction: The government is encouraging the use of electric stoves (Induction) to reduce dependency on imported LPG.

Verify Weight and Price: When buying the new 7.1 kg cylinders, ensure the weight is accurate and you are not charged more than the fixed price of NPR 955.

Conclusion

The crackdown on the LPG gas illegal trade in Nepal is vital for maintaining social order and ensuring that every household has access to cooking fuel. Through the combination of strict monitoring, the half-cylinder distribution strategy, and public vigilance via the 1137 hotline, the government aims to stabilize the market and eliminate the artificial crisis.

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