Kathmandu. The price of LP gas cylinders in India has been increased by Rs 29 per cylinder. According to Indian media reports, the new price will come into effect from Sunday.

This price hike in India indicates that the pressure to adjust the price of LP gas will increase in Nepal because Nepal has been importing all its LP gas from India.

According to the new price, the price of LPG cylinder has increased from Rs 913 to Rs 942 inNew Delhi, the capital of India.Earlier on March 7, the price of LPG was increased by Rs 50 per cylinder due to fluctuations in the international energy market and the impact of on the supply chain.

Nepal Oil Corporation (NOC) has been adjusting the price of LP gas in Nepal on a monthly basis based on the new purchase price ( received from Indian Oil Corporation (IOC){{}.The price change in India may increase the cost of gas imported by Nepal in the upcoming price list, so the possibility of automatic price adjustment in the Nepali market has increased.

However, whether or not the price will increase in Nepal will depend on the new price list sent by the IOC, the cost of transportation, the exchange rate and the overall profit and loss of the corporation .According to energy experts, if the price of LP gas remains high in the international market, the financial burden on the NOC may increase. If the corporation fails to manage the losses, the consumers may also have to bear the brunt of the price hike.

Meanwhile, Sujata Sharma, joint secretary at the Ministry of Petroleum and Natural Gas, said that the government has adopted measures to ensure adequate supply of domestic LP gas, includingincreasing domestic production and expanding imports as per the need.

According to him, due to the subsidy given by the government on domestic LP gas cylinders, there is still an under-recovery of about Rs 700 per cylinder.According to her, the decrease in the consumption of gas in the commercial and industrial sector in recent period, improvement in the booking cycle and effective implementation of the Delivery Authentication Code (DAC)’ have helped in the demand management.

Since LP gas is used as the main cooking fuel in Nepal, the price change in India has a direct impact on Nepali consumers and markets.Therefore, both the Nepal Oil Corporation and the consumers are keenly watching the upcoming price list of Indian Oil } Corporation.