Book Ghimire

We welcome the government’s decision to annul the operating license of Sugam Gas Company (SGC), the notorious liquefied petroleum gas (LPG) bottler that has been tampering with the gas cylinders of competitor firms and putting the lives of thousands at risk. This has taught a big lesson to gas bottlers reportedly engaged in various kinds of foul play. However, it is unfortunate that despite acknowledgment of the gravity of SGC’s crime, the government has not taken any initiative to nab and punish its promoter, Shiva Prasad Ghimire. This person, who has masterminded such heinous crime, still moves about freely. Government authorities concerned, particularly the Department of Commerce and the line agency for upholding consumer rights, have done virtually nothing by way of action against him.



The reasons for the inaction are obvious: Ghimire, who owns several petrol pumps, enjoys political backing and has strong links to corrupt officials. He has been tactfully using all his connections to evade action. This is simply deplorable. We demand that Ghimire not go unpunished if the state is committed to delivering justice to consumers and upholding consumer rights. We also urge the government to take immediate steps to correct long running anomalies in the LPG business, in which there are already over four dozen players. It is most worrisome that such a huge sector remains largely unregulated, though the Nepal Oil Corporation (NOC) has been asked to do the job for now.



We urge a change in the government’s policy since NOC itself is a petroleum importer and supplier of LPG to bottlers. Under fair competition norms no company can function as both supplier and regulator. Besides, NOC is notorious for corruption and has been embroiled in a host of managerial and financial problems. It would be foolish to expect it to act fairly. If it had functioned properly, most of the problems we are facing now would never have surfaced. The government must designate a separate authority to regulate the business.



People must be provided an outlet where they can file complains about being short-changed in fuel quantity, about tampered cylinders and about the unresponsiveness of suppliers. They need to be assured that their concerns will be addressed. The government must ban dealers from selling gas from multiple companies, something which makes it easy to get hold of cylinders belonging to their competitors and tamper with them. It must also monitor strictly so that cylinders supplied meet stipulated standards and are cleaned and tested regularly. It must formulate clear laws and policies to render companies accountable and punish them in case of lapses.

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