Nepal Oil Corporation mandates VAT bills for all cooking gas sales
Nepal Oil Corporation has told LP gas industries to make sure a VAT bill is given for every cylinder sold, after complaints that sellers were issuing no invoices and some were charging above the official price.
The Nepal Oil Corporation (NOC) has issued a fresh directive requiring all liquefied petroleum (LP) gas industries to ensure that value-added tax (VAT) bills are provided for every cylinder sold to consumers. The corporation says the move follows rising complaints that buyers were getting no bill or invoice after purchasing cooking gas.
The NOC's LP Gas and Aviation Department wrote to all gas industries on October 26, asking them to arrange for their dealers and sellers to give bills to buyers, Onlinekhabar English reported. The department's director, Binitmani Upadhyaya, told Nagarik News the instruction was issued because of complaints that sales were going unbilled.
The official price of a cooking gas cylinder is Rs 2,060, according to Nagarik News. Consumers have complained that during shortages some sellers charged between Rs 2,700 and Rs 3,000 per cylinder without giving a bill, the paper reported; sellers had cited road blockages caused by floods and landslides as the reason for the higher prices.
This is not the first such order. Both Karobar Daily and Nagarik News reported that the NOC had written to the industry on the same issue on August 14, 2024, and January 23, 2025; Nagarik News said those instructions were ignored. The corporation has warned that businesses that fail to comply with this latest order will face strict action.
Industry and consumer response
The Gas Dealers Federation Nepal welcomed the directive in a statement on Wednesday, describing compulsory VAT bills as a "milestone" for the sector that would help bring order to the gas trade, Onlinekhabar English reported. The federation said it had repeatedly made requests and suggestions to the corporation to make the business more orderly and safe. Federation President Gyaneshwor Aryal urged all gas businesses to follow the directive fully, and the federation asked consumers to make a habit of asking for a bill every time they buy gas.
According to Nagarik News, the NOC expects compulsory bills to keep transaction records in order, confirm sales details and make the responsibilities of dealers and distributors clear. The corporation has asked gas industries to control and regulate the activities of their dealers and sellers so the directive is carried out. Nagarik News noted that the order will need regular market monitoring by the authorities to be effective.