The government is planning to implement dual colour Liquefied Petroleum Gas (LPG) cylinders — red for domestic and blue for industrial use — from the next fiscal year. But this is the fourth time, the government has planned to introduce the dual coloured cooking gas cylinder to provide domestic consumers limited subsidy.
"The intense dialogue between the Ministry of Commerce and Supplies, Nepal Oil Corporation (NOC) and LP Gas Industry Association has finalised the implementation of dual colour cooking gas cylinders from the next fiscal year," said joint secretary of the ministry Jib Raj Koirala.
The ministry has directed NOC for the final preparation, he said, adding that the earlier plan had to be shelved due to lack of preparation. "The ministry is holding final discussions with LP Gas Industry Association."
"The dual colour cooking gas cylinder system will come into practice in coordination with the LP Gas Industry Association," informed acting chief executive of NOC Jayaraj Acharya.
"Dual colour cooking gas cylinders will be implemented this time, as the preparation has been completed," he said, adding that consumer card distribution has been expedited. Acharya also asked the public to get consumer cards within mid-June. "The state oil monopoly is incurring losses as it failed to implement dual colour cooking gas cylinders in the past," he added.
NOC is currently incurring a loss of Rs 439 per cylinder, according to the Indian Oil Corporation's May 1 rate card.
However, traders have not yet prepared dual colour cooking gas cylinders and are distributing the red ones which are in practice. "They will prepare blue colour cooking gas cylinders only after the dialogue with the government is fruitful," said president of LP Gas Industry Association Shiv Prasad Ghimire.
"However, traders will prepare blue colour cooking gas cylinders within a week, if the government is ready to solve some technical issues that the association has been raising," he added.
Due to lack of transparent consumer card distribution and subsidy claiming mechanism, the earlier plan to implement dual coloured cooking gas cylinders had failed. "We have distributed some one million consumer cards till now," president of LP Gas Sellers Federation Chandra Thapa said, asking the government to effectively implement the dual coloured cooking gas cylinders without any doubts.