Gas Crisis Sparks Debate Over Plan to Bring Nepal Army Into LPG Business

The government is preparing to involve the Nepal Army in LPG distribution as a possible long-term solution to recurring gas shortages. Officials at the Ministry of Industry, Commerce and Supplies say discussions are underway to allow the Army to operate gas depots in major cities, similar to its existing petrol stations. However, gas entrepreneurs, Nepal Oil Corporation officials and other stakeholders have raised concerns, arguing that the supply crisis is also linked to weak management, inadequate storage and ineffective regulation. They have suggested strengthening Nepal Oil Corporation, establishing strategic gas reserves and improving the supply chain instead of expanding the Army’s commercial role. The proposal has also raised questions about fair competition between private gas companies and a government-backed operator, as well as the broader involvement of the security forces in commercial activities.