After doing an extensive homework, the Nepal Oil Corporation (NOC) is going to start distributing consumer identity cards from this week to provide customers with the Liquefied Petroleum Gas (LPG) at subsidized rates.
Talking to The Rising Nepal on Sunday, Sushil Bhattarai, deputy director of the NOC, said that the corporation has aimed at preparing the database of households and industries for regulating the gas distribution.
The government has already announced to provide to the farmers and the students with about 33 per cent discount on petroleum products.
According to him, the consumer ID cards will be used for identifying target consumers.
As the corporation lacks the database to give subsidies to right consumers, including students, it will distribute the cards on the basis of which cooking gas will be distributed, he said.
"We will adopt a suitable pricing modality, categorize cylinders for household and industrial purposes," he added.
The cards will be of two categories– red and blue. The red cards will be for a household purpose, while the blue ones will be an industrial purpose.
The corporation has planned to distribute the cards to consumers through LP gas dealers and retailers, he said.
"We have already instructed the Gas Dealers’ Federation of Nepal (GDFN) in this regard," he said.
Similarly, the corporation will collect the data of industrial users through the help of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
"Following the introduction of ID cards, it will be easier for consumers to get gas," he said.
He further said that the consumers will get the gas as per the card system after completing the distribution process.
He said that this provision will help keep the distribution of consumer records updated. "This will also help maintain transparency of the distribution channel," he said.
Earlier, the Ministry of Commerce and Supplies had planned to introduce 19-kg LPG cylinders for the industrial purpose.
The NOC had published a notice for gas dealers to take dealership from LP Gas Industry Association and related gas industries by filling in the forms prepared by the corporation.
The dealers need to be registered with Value Added Tax (VAT) or take the Permanent Account Number (PAN) for taking getting dealership.