KATHMANDU, March 4: Liquid petroleum gas (LPG) companies that circulate substandard cylinders and repeatedly supply less than 14.2 kilograms of gas to consumers could find their operating licenses terminated if the Nepal Oil Corporation (NOC) seriously implements the new bylaw endorsed last week to regulate the cooking gas market.[break]
As per the bylaw, “companies that risk lives of consumers by circulating cylinders that are substandard and whose foot-rings are cut will face action as tough as termination of their operating licenses.”
It includes a provision that the NOC suspend supplying gas to companies that refill cylinders with less than the stipulated quantity of gas, thereby cheating consumers. “If the action is repeated three times, their operating licenses will be scrapped.”
The bylaw has, for the first time, set clear parameters for the establishment of LP gas bottling companies, securing gas import licenses, and codes of conduct for gas dealers, who function as retailing hands of the companies.
“It has provisions that streamline the companies’ operations and also incorporates safety and standard-related measures that protect interests of consumers,” said Digambhar Jha, NOC managing director.
The bylaw has also paved the way for the introduction of cylinders of different sizes for different consumer groups. For instance, NOC can direct gas companies to supply gas to the industries and other commercial consumers in cylinders of 19kgs capacity. Likewise, it can allow companies to circulate cylinders of 5kgs capacity targeting hilly and high hills consumers.
Half-filled LPG cylinder priced at Rs 1,300 in Taplejung
The new law asks the NOC to take into account land areas, detailed infrastructure plans, storage capacity, fire-fighting arrangements, documents that certify cylinders are subjected to hydraulic pressure and explosive tests while issuing operating licenses.
“Companies that have maximum services, facilities and security arrangements should be given first priority,” says the bylaw.
The new law asks companies to submit Rs 1 million to the NOC to get the purchase delivery order, which in turn enables them to get the supply from the Indian Oil Corporation (IOC).
The bylaw does not, however, cover the companies that would import the gas itself and function as independent gas supplier or bottlers. “The companies that receive gas through NOC’s PDO must deal with NOC’s products only,” says the regulation, barring the companies from dealing with multiple suppliers.
On the safety front, the bylaw bars companies from circulating cylinders which don’t pass hydraulic and explosive tests, and other standard parameters set by the Department of Standard and Metrology. Such a provision has been absent so far.
Likewise, it bars companies from circulating cylinders whose foot and neck rings (bearing companies name, logo and serial number) have been re-welded. “This has been provisioned to eliminate the present anomaly of a company using rivals’ cylinders to market their products,” said Jha.
Most importantly, this provision would ensure the quality of each cylinders remains intact, preventing accidents.
“In case companies defy this provision and are found circulating substandard cylinders, they will face action as tough as cancellation of operating licenses,” says the bylaw.
It has restricted companies from refilling cylinders which don’t contain valves certified by Department of Standard and Metrology.
The bylaw has also made it mandatory for companies to clearly engrave the name, logo, cylinder’s serial number, standard certifying agency’s name, date of the hydraulic test, the weight of the empty cylinder, the date the cylinder was last tested and cleaned, as well as the date it is due to be tested and cleaned next.
“This provision has been incorporated in a bid to empower consumers, uphold their rights to information and also to help them cross-check the standard and quantity of supply,” said Jha.
Companies are also barred from refilling other companies’ cylinders. “However, in case the company faced protracted strike and other problems creating serious shortage in the market, NOC can ask specified companies to refill its cylinders,” said Jha. This special clause has been incorporated with a motive to prevent consumers from facing undue problems.
Moreover, the bylaw makes it mandatory for companies to refund deposits taken on issue of a fresh cylinder. In the absence of this provision, companies were refusing to take back the cylinders, compelling consumers to dispose of them at cheaper rates.
“Licenses will be scrapped if companies are found to be involved in black marketing,” says the bylaw.
-1200x560-1783083574.webp)
