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Nepal Faces Persistent LPG Shortage; Nepal Oil Corporation Implements "Half-Cylinder Supply" Policy

Published on 2026-03-14

Nepal has been facing a persistent shortage of liquefied petroleum gas (LPG) for nearly two months. Starting March 12, the Nepal Oil Corporation (NOC) implemented a "half-cylinder supply" policy. Currently, LPG cylinders are in extremely short supply in Kathmandu. In early February, multiple Nepali media outlets reported that hundreds of people lined up at state-owned gas distribution centers in Kathmandu every morning with empty cylinders, only to return empty-handed.

On March 12, the NOC announced the temporary implementation of the "half-cylinder supply" measure, meaning that 14.2-kilogram cylinders would be filled with only 7.1 kilograms and sold to consumers at half the price, in response to the ongoing supply shortage in the market.

The announcement stated that over the past two to three months, the demand for LPG in the Kathmandu Valley has remained high. At the same time, recent tensions and escalating conflicts in the Gulf region are affecting the global supply of petroleum products, including LPG.

Nepal's LPG supply is almost entirely sourced from the Indian Oil Corporation (IOC) and distributed to the local market by the NOC. Currently, LPG remains the primary fuel for daily cooking among Nepali households. The NOC noted that after news about Indian consumers facing LPG supply difficulties spread on social media, there has been a trend in Nepal of purchasing and stockpiling gas beyond actual needs.

On March 11, the NOC issued a notice urging the public to purchase and use fuel according to their actual needs, avoid buying additional cylinders, and switch to electricity instead of gas where possible to reduce unnecessary fuel consumption. The notice also warned that those found hoarding LPG cylinders without valid reasons would face measures such as suspension of sales, with severe cases subject to legal action.

Nepal's energy supply has long been heavily reliant on imports. In 2015, due to disruptions in transportation at the Nepal-India border, the country experienced severe shortages of fuel and cooking gas, with the impact lasting for several months.

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