LPG dealers launch protest demanding commission hike

DEALERS of liquefied petroleum gas (LPG) have stopped taking consignments of LPG cylinders from bottling plants from Friday, demanding commission as hiked by the government. Maheshore Shrestha, general secretary of the Gas Dealers Federation Nepal (GDFN), said the government has hiked the dealers’ commission by Rs 4 per cylinder, but bottling companies have decided to offer only Rs 2 per cylinder. “Before the hike, LPG bottlers used to provide Rs 30 per cylinder as sales commission to dealers, and after the hike, the commission has been increased to just Rs 32 per cylinder,” he said. GDFN is sales agent of Nepal LPG Industry Association (NLPGIA), the apex body of LPG bottlers which refills cooking gas cylinders and sells them in the market through its dealers. Shrestha said they have formed a struggle committee comprising members from 11 organisations to protest against NLPGIA. “However, GDFN has decided to distribute LPG cylinders which are in its stock.” The Nepal Oil Corporation (NOC) has raised the shipping charge, local transportation charge, company overheads and the 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 a flat Rs 32 per cylinder. The GDFN said the commission was inadequate in view of the current inflationary trends. GDFN has also submitted a 13-point demand to the Ministry of Commerce and Supplies and the NOC demanding an increase in their commission to Rs 50 per cylinder. The government’s move to raise the commission for dealers and transporters follows its ambitious plan to introduce the dual-cylinder system to end subsidies given to commercial users and enable the NOC to cut its losses in the LPG business. Meanwhile, the Ministry of Commerce and Supplies on Saturday distributed the authorised dealer certificates to 60 LPG dealers fulfilling all the government-set requirements. Among 300 LPG dealers, only 60 were able to fulfil the requirements, according to the GDFN. The dealers have demanded that their commission be increased to Rs 50 per cylinder