Kathmandu Braces as Cooking Gas and Fuel Crisis Deepens Amid Middle East Tensions

KATHMANDU – The capital city is reeling under a worsening shortage of Liquefied Petroleum Gas (LPG) and petroleum products, with long queues of frustrated consumers snaking around distribution depots from the early hours of Thursday morning.

Despite repeated assurances from the state-owned Nepal Oil Corporation (NOC) that supply remain “normal,” the ground reality in Kathmandu paints a picture of growing desperation.

Chaos at the Depots

In the Balaju Industrial Area and surrounding neighborhoods like Chabahil and Kirtipur, hundreds of residents were seen waiting with empty cylinders. Many reported being turned away after hours of waiting, as retailers claim they are receiving only a fraction of their usual stock.

“I’ve been tracking my empty cylinder at the local depot for two weeks. Today they told me to come to the factory, but even here, the line hasn’t moved for hours,” says a local resident who traveled from the New Bus Park in hopes of securing a refill.

The “Phantom Scarcity”: Why the Shortage?

Market analysts and officials point to a “perfect storm” of geopolitical and domestic factors:

• Middle East Conflict: Escalating tensions between the US, Israel, and Iran have disrupted shipping through the Strait of Hormuz. While Nepal buys from the Indian Oil Corporation (IOC), the global spike in crude prices—briefly topping $114 per barrel—has triggered panic.

• Panic Buying & Hoarding: The NOC blames “artificial demand.” Fearing a repeat of past blockades, households have begun stockpiling 2–3 cylinders, causing daily demand to jump from the usual 100,000 to over 130,000 cylinders.

• Refinery Maintenance: Technical issues at India’s Mathura and Barauni refineries earlier this year created a backlog that the distribution chain has yet to clear.

NOC’s Response: “No Shortage, Only Panic”

The NOC maintains that nearly 100 bullets of LPG are entering Nepal daily, which should be sufficient for the national demand of 45,000 tonnes per month.

“There is no problem on the supply side from India,” stated Manoj Kumar Thakur, NOC Spokesperson. “The issue is distribution. We have instructed bottlers to prioritize households over commercial hotels and restaurants. We are also monitoring reports of dealers charging ‘exchange fees’ or hoarding stock for higher prices.”

Impact on the Economy

The crisis isn’t limited to the kitchen. Fuel stations across the Valley have also seen increased traffic as the NOC mulls over a price hike following the recent general elections.

• Inflation Risks: Rising transport costs are already being reflected in the price of vegetables and grains arriving from the Terai.

• The Switch to Electric: The government has renewed its push for electric induction stoves, but IPPAN (Independent Power Producers’ Association, Nepal) warns that Kathmandu’s aging transformers may not handle a mass shift to electric cooking during peak hours.

Product	Current Reserve (Days)
Petrol	10–13 Days
Diesel	13 Days
Aviation Fuel	15+ Days
LPG	Rolling supply (No fixed reserve)

The Department of Commerce, Supplies, and Consumer Protection has formed five dedicated inspection teams to crack down on black marketing. However, for the average Kathmandu resident, the wait for a warm meal continues.