KATHMANDU: The price of liquefied petroleum (LP) gas has increased by Rs 105.18 per cylinder, with gas dealers citing higher transportation costs caused by the obstruction of the Prithvi Highway.
Following the increase, the price of a gas cylinder in the Kathmandu Valley has risen from Rs 2,060 to Rs 2,165.18. Gas dealers said the revised price would come into effect in the Valley from Thursday.
Although Nepal Oil Corporation (NOC) had earlier announced that the prices of petroleum products would remain unchanged, its pricing provisions have allowed gas businesses to add transportation costs under certain circumstances.
Under the existing arrangement, LP gas is to be sold at the prevailing price for deliveries within 15 kilometres of the corporation’s depot or office and within 50 kilometres of the gas industry. Businesses can charge additional transportation costs for deliveries beyond the prescribed distance.
In a statement, NOC said the price of LP gas had been fixed at Rs 2,060 per cylinder for deliveries within 50 kilometres of the industry. The provision effectively allows suppliers to determine additional charges based on transportation costs for consumers located more than 50 kilometres from the gas industry.
However, previous statements issued by NOC had not explicitly stated that the price of LP gas would be adjusted according to transportation costs for distances beyond 50 kilometres.
The latest increase has therefore raised questions over the mechanism through which additional transportation charges are being passed on to consumers.
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