Talks between LPG bottlers, dealers inconclusive; stir to continue

TALKS between the agitating Gas Dealers Federation Nepal (GDFN) and Nepal LPG Industry Association (NLPGIA) on LPG dealers’ commission ended inconclusive on Monday. The dealers said that the bottlers refused to address their demands that include providing commission as determined by the government, removing old liquefied petroleum gas (LPG) cylinders from the market, and depositing in bank the LPG cylinder guarantee amount paid by customers. “We have decided to continue our agitation until the bottlers address our demand,” said Chandra Thapa, Kathmandu district president of GDFN. GDFN is sales the agent of NLPGIA, the apex body of LPG bottlers which refill cooking gas cylinders and sell them in the market through the dealers. GDFN has stopped taking consignments of LPG cylinders from bottling plants since Friday. They have said although the government hiked the commission by Rs 4 per cylinder, the bottlers are only offering a two-rupee hike in the commission. 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 Rs 32 per cylinder flat. According to the federation, before the hike, bottlers used to offer Rs 30 per cylinder as sales commission to dealers, and after the hike, the commission has been increased to just Rs 32 per cylinder. GDFN said the commission was inadequate in view of the current inflationary trends. The federation has formed a struggle committee comprising members from 11 organisations to protest against NLPGIA. The struggle committee on Saturday vandalised trucks ferrying LPG cylinders in different parts of Kathmandu. The trucks belonged to Shiva Prasad Ghimire, president of NLPGIA. On Monday, the committee forcefully shuttered the Banepa-based refuelling plant of Himal Gas. Consumer rights activists said the ongoing tussle between gas dealers and bottlers is a “planned move” to create an artificial LPG shortage in the market. “These traders are agitating for Rs 2. Their vested interest is likely to hit consumers if the agitation prolongs by 2-3 days,” said consumer rights activists Prem Lal Maharjan. He said the government has to break its silence and intervene. “The government should immediately activate the Essential Service Act to prevent a strike on LPG supply,” he said.