LPG shortage in Kathmandu continues

Nepal’s capital, Kathmandu, continues to be plagued by fuel shortage, which began in December last year. The lack of supply of LPG has given rise to a thriving black market. Nepal’s monthly consumption of LPG is 25,000 tons, but Nepal Oil Corporation (NOC) is able to supply only 11,000 tons. Although long queues in front of LPG depots in the capital are now a common site, there does not seem to be any shortage outside Kathmandu. NOC stopped deliveries to petrol pumps after reductions in imports from India, the country’s only source of petrol. The crisis began after Nepal failed to pay dues to Indian Oil Corporation (IOC), but the government immediately approved a US$3.12 million loan last December to help ease the shortage, and paid some dues it owed IOC. (February 13, 2012)