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Nepal’s liquefied petroleum gas (LPG) supply currently exceeds normal consumer demand, but panic buying and unnecessary stockpiling by households have created an artificial shortage in the market, gas industry operators said.

Gokul Bhandari, managing director of Nepal Gas Industry, said that while normal daily consumption stands at around 110,000 LPG cylinders, approximately 130,000 cylinders’ worth of gas is currently being imported and distributed each day.

Despite supplying around 20,000 more cylinders than normal daily demand, consumers who genuinely need LPG are struggling to obtain it because many households are stockpiling cylinders, Bhandari said.

Nepal has an estimated 17.5 million LPG cylinders in circulation nationwide. Bhandari said the market could return to normal within a few days if consumers avoid purchasing additional cylinders when they already have enough gas to last 15 days to a month.

“If consumers refrain from buying extra cylinders when they already have sufficient stock, the market can stabilize within a few days,” Bhandari said.

Distribution monitoring tightened

To improve distribution and prevent unnecessary stockpiling, LPG companies have started submitting daily records of gas imports and sales to the Nepal Oil Corporation (NOC).

The industry is also preparing a system under which dealers will maintain records of how much LPG is sold to individual consumers.

The move is intended to make distribution more transparent and help identify unusual purchasing patterns.

Industry calls for long-term infrastructure investment

Bhandari said Nepal also needs long-term measures to strengthen its LPG supply system, including expanding storage capacity, extending pipelines and developing infrastructure through public-private partnerships.

He also called for a dedicated legal framework governing petroleum and explosive substances.

According to Bhandari, Nepal currently lacks a clear domestic legal structure specifically tailored to the LPG and petroleum sectors, forcing gas companies to rely heavily on foreign standards.

He said Nepal should establish its own comprehensive legal framework to regulate the industry, strengthen safety standards and support the sustainable expansion of LPG infrastructure.