January 5: The import of cooking gas (LPG) has been declining in recent days, according to the data made public by the Department Customs. The reasons for the decline in import of LPG include lack of liquidity, reduction in industrial production, development and construction work not progressing at a fast pace and some industries switching to electricity instead of gas.

As of mid-December of current fiscal year, more than 20.63 million kg of LPG was imported in Nepal against the import of 216.7 million kg of LPG last year.

There is no reliable data available on how much gas is consumed by the households as well as the commercial and industrial sectors in Nepal. According to Nepal Oil Corporation (NOC), although there is no official data, it is estimated that 25 percent of the total consumption is used in industrial and commercial sectors.

Binit Mani Upadhyaya, spokesperson for NOC said, “Hotels and industries that produce iron, steel, cement and other industries consume LPG. Big industries like Jagdamba, Aarati Strips Pvt Ltd have signed agreement with NOC to avail LPG.”

Although the decline in import of LPG is good, Upadhyaya said that it not a matter of excitement as the proportion of decline is very small. There is a possibility that gas consumption may have decreased due to industries cutting their production.

It is estimated that the demand for gas decreased recently due to increased availability of hydroelectricity. An official of Jagdamba Steel informed New Business Age that production has decreased recently while electricity is gradually replacing LPG.

In the past, cement industries also used LPG, but they now rely on electricity.

Dhruba Raj Thapa, president of the Cement Manufacturers Association of Nepal, said that the cement industries are reducing the use of gas because they have enough electricity.

Government data shows that the pace of development is almost at a standstill in the current fiscal year. According to the Office of the Financial Comptroller General, the government has spent only 11.16 percent of the capital budget so far. Spokesperson Upadhyaya said that due to the fact that more diesel is being consumed in construction projects, the import is low because the construction work is almost at a standstill.