Government Strategy Shifts Subsidy from LPG to Electric Stoves

The government has unveiled a long-term strategy to phase out subsidies on liquefied petroleum (LP) gas by fiscal year 2035/36 and instead provide grants for electric stoves.

The Ministry of Energy, Water Resources and Irrigation released the Energy Consumption Growth and Export Strategy, 2083, which aims to gradually reduce LP gas use and promote clean energy. Under the plan, households will receive subsidies to purchase electric stoves, encouraging a nationwide transition to electricity-based cooking.

Nepal’s reliance on imported LP gas has become increasingly costly. Customs data show imports worth Rs 41.65 billion in the first nine months of the current fiscal year, totaling 4.1 million metric tons. In fiscal year 2024/25, the country spent Rs 62.58 billion on 5.5 million metric tons of LP gas, compared to Rs 55 billion the year before.

According to Nepal Oil Corporation (NOC), the country currently imports about 48,000 metric tons of LP gas each month. NOC reports a loss of Rs 331.25 per cylinder, which sells at Rs 2,160.

Officials say the heavy spending on fuel imports consumes a significant portion of remittance earnings sent home by Nepali workers abroad. To address this concern, the Ministry of Industry has been tasked with implementing the strategy, in coordination with the Ministry of Finance and the Ministry of Energy.

The Nepal Electricity Authority (NEA) has already launched a campaign to promote electric stoves, supported by local governments. The Authority is upgrading transmission lines, transformers, and networks to ensure reliable power supply.

Energy Minister Biraj Bhakta Shrestha has directed agencies to make the strategy more scientific and result-oriented. Nepal’s installed hydropower capacity has reached 4,296 megawatts and is expected to rise to 4,500 megawatts by the end of the fiscal year. Per capita electricity consumption now stands at 450 kilowatts.

Nepal currently exports about 2,918 gigawatt-hours of electricity. The government hopes to boost domestic consumption by encouraging electric stoves and expanding electric vehicle use. Plans include widespread installation of charging stations through cooperation between NEA and the private sector. – With inputs from RSS