Nepal LPG shortage worsens in Kathmandu Valley

Authorities say 63,383 cylinders entered the Valley on Friday and Saturday last week after refills at plants in Tarai-Madhesh and deliveries via alternative routes. But dealers say they are still being allocated too little gas, and consumers continue to queue with empty cylinders, a sign that the bottleneck is in distribution, hoarding or black marketing rather than only transport.

The crisis began after the US-Israel war against Iran disrupted supply, then worsened when a landslide at Krishnabhir on the Prithvi Highway cut the main route to Kathmandu just as the Nepal Oil Corporation resumed full 14.2-kg cylinder deliveries. That combination has exposed how fragile Nepal’s LPG system is: a single road failure, some stockpiling and a rush of empty cylinders back into the market can overwhelm the chain.

For investors and businesses, the immediate losers are restaurants, small food sellers and consumers facing higher costs and lost time, while dealers and middlemen stand accused of exploiting scarcity. The broader economic risk is that repeated shortages feed black-market pricing, discourage normal household consumption and add pressure on the state ahead of major festivals, when demand typically spikes.

The government’s planned command post with district administrations, the oil corporation, gas industries and police could help, but only if it tracks cylinders from dispatch to depot to kitchen and confronts hoarding directly. Longer term, Nepal still needs cleaner cooking alternatives, but the near-term test is simpler: restoring confidence that LPG is actually available.