- Although it was decided to make it mandatory from Mangsir 1 (mid-November) and that dealers who did not comply with certification would not be allowed to sell gas, the implementation could not be carried out.

- Let's resolve the dealer certification as quickly as possible for an organized business.”──Chandra Thapa, President, Gas Dealers Federation Nepal.

Last Shrawan (July/August), a meeting involving Nepal Oil Corporation, Nepal LP Gas Industry Association, and Gas Dealers Federation made three decisions to regulate the gas trade. One of the decisions stated that the certification of gas dealers would be mandatory starting from Mangsir 1 (mid-November).

For that, all dealers were required to come under the dealer certification framework by the end of Kartik (mid-November). It was decided that dealers who did not comply with the certification framework would not be allowed to sell gas starting from Mangsir (mid-November). It was also stated that old gas cylinders would not be sent to the market, those that had already reached the dealers would be returned to the industry, and awareness would be spread among the general public.

The tripartite agreement made in this manner has not yet been implemented. In accordance with the agreement, the Gas Industry Association also issued a notice in Ashoj (September/October). However, it could not enforce it from Mangsir 1 (16th November). “The Department of Commerce had started this initiative 6–7 years ago, but it was left incomplete. The Gas Dealers Federation and we have tried to make it mandatory. However, no progress was made from the government’s side,” said the Association’s president, Shiva Ghimire.

The Department of Commerce, in 2072/73 (2015/16), had mandated depot certification to ensure transparency in gas distribution. A deadline was set for this purpose. However, 70% of dealers did not comply with the certification process.

This initiative was launched in collaboration with gas dealers to prevent illegal activities by gas businesses and ensure smooth market supply. Through certification, it was expected that information about the number of gas dealers within the capital, their transactions, sales locations, and agreements with industries would be available to government agencies. It was said that this would make controlling black marketing and monitoring easier. However, some dealers defied the government’s directives and refused to comply.

The Association’s President, Ghimire, stated that a former Chief District Officer has been appointed to oversee gas certification. “We are forming a team, and the draft of the procedures has also been prepared. After certifying the dealers, we will inform the Ministry of Industry, Commerce, and Supplies, the Corporation, and the Department of Commerce,” said President Ghimire. “The plan is to complete the certification by the end of Falgun (mid-March).”

The Association had issued a notice stating that, as per the provisions of the Nepal Oil Corporation’s LP Gas Regulations 2065 (2008), gas would be sold only through the official dealers of the respective industry starting from Mangsir 1 (mid-November). Suraj Shah, Director of the LPG and Aviation Department at the Corporation, stated that they are requesting verified details of dealers from the industries for dealer certification.

“After the meeting in Shrawan (July/August), it was decided to make it mandatory from Mangsir (mid-November). However, so far, details from only half of the industries have been received. We have sent another letter due to the delay,” said Shah. “Once we receive data from all industries, we will jointly certify them, and there will be concrete dealers immediately after certification.”

Across the country, 59 gas industries have sold 14.4 million cylinders in the market. However, the business is not well-organized. The exact number of dealers and sellers has not been determined. Many sellers are found to be selling gas from multiple companies. This practice of selling gas from various companies has also led to the general public being deceived.

Experts say that dealer certification will bring sellers under the supervision of the Corporation and the industries. This will also make it easier to organize the market, said Chandra Thapa, President of the Gas Dealers Federation Nepal. “Gas is a highly sensitive product from a safety perspective, so it is essential to ensure its trade is secure. The business must be organized, and for that, certification is indispensable,” he said.

The President of the Federation, Thapa, said, “Since I took office, I have been raising the issue of certification. It is extremely necessary and must be resolved as quickly as possible.” During the certification process, sellers must obtain approval from local authorities. They must also be official dealers of the company. Those who sell gas only from gas shops are allowed to sell gas from a maximum of two companies.

It must include fire fighting equipment, gas-weighing scales, price lists, and other necessary details. Experts say that due to the existing business practices, certification would reduce the number of sellers by 30%. Thapa mentioned that once gas certification is implemented, it would also bring ease in managing the dual pricing of gas that the government is trying to enforce.

Currently, gas is more easily accessible and cheaper for commercial consumers than for household use. Looking at the financial condition of the Corporation, there is a loss only on gas. The solution is to set different prices for household and commercial consumption,” Thapa said. “There must be a clear identification and definition of customers for household and commercial purposes. However, this is only possible if the certification of sellers is carried out.”

Source: Kantipur