LPG dealers call off protest after government assurance

THE agitating Gas Dealers Federation Nepal (GDFN) on Tuesday called off all its protest programmes after the government formed a committee to look into its demand. The Ministry of Commerce and Supplies has formed a six-member committee under the coordination of Under-secretary Mina Aryal. Other member includes representatives from Nepal Oil Corporation (NOC), Federation of Nepalese Chambers of Commerce and Industry, and Nepal LPG Industry Association (NLPGIA). “The committee has been asked to submit its report within 30 days,” said Deepak Subedi, spokesperson for the ministry. “The report will suggest whether dealers’ commission should be hiked.” The GDFN had stopped taking consignments of liquefied petroleum gas (LPG) cylinders from bottling plants since last Friday, demanding that the NLPGIA allocate them appropriate commission as hiked by the government. Although the government has hiked the commission by Rs 4 per cylinder, the delears say, the bottlers have only raised the commission by Rs 2. NOC has raised the shipping, local transportation charges, company overheads and commission for dealers and bottlers by 9 percent to Rs 19.28 per cylinder. Under the plan, the commission for LPG dealers was increased to Rs 32 per cylinder flat. According to the federation, before the hike the bottlers used to pay the dealers Rs 30 per cylinder in sales commission. GDFN said the commission was inadequate in view of the current inflationary trends. GDFN is the sales agent of NLPGIA, the apex body of LPG bottlers which refill cooking gas cylinders and sell them in the market through the dealers. NOC provides a combined Rs 62.55 per LPG cylinder to the bottlers and dealers as sales commission. Of the total amount, NLPGIA provides Rs 32 per cylinder to its dealers. The dealers has also called on NLPGIA to remove the old LPG cylinders from the market, and deposit into the bank the customers’ guarantee amount against LPG cylinder. “The committee will only look into the commission row,” said Subedi. The federation had formed a struggle committee to protest against NLPGIA. The struggle committee had on Saturday vandalised trucks ferrying LPG cylinders in different parts of Kathmandu. On Monday, the committee forcefully shuttered the Banepabased refilling plant of Himal Gas.