Government Moves to Curb Artificial Price Hikes amid Hoarding Fears Ahead of Election

The government has stepped up efforts to curb rising prices of daily essentials amid complaints of shortages and sudden price hikes across the country, even as official figures show that the supply of key commodities—particularly cooking gas—remains adequate.

The Department of Commerce, Supplies and Consumer Protection on Wednesday directed producers, importers and distributors to immediately halt what it described as “unnatural and unjustified” price hikes in essential consumer goods ahead of the election, warning against profiteering and market manipulation.

In a press statement, the department said it has taken serious note of consumer complaints and media reports highlighting sharp increase in prices of essential goods and supply disruptions of items such as edible oil, rice and cooking gas. It instructed major producers, importers and distributors of food grains and dealers of petroleum products to ensure smooth supply without taking undue profits.

“The department has instructed concerned business operators to provide goods and services at fair prices and address the artificial price rise seen in the market,” the statement said, stressing the need to maintain a competitive and fair trading system.

The department said it has intensified joint market monitoring to check producers, sellers, importers, stockpilers and service providers involved in essential and daily consumable goods. It said authorities would take action in line with the Consumer Protection Act, 2075 BS, and the Consumer Protection Regulations, 2076 BS, to safeguard consumers’ right to quality goods and services.

The move comes amid growing confusion in the market, particularly over cooking gas, where consumers in several areas have reported supply disruptions and long queues at retail outlets. However, the Nepal Oil Corporation (NOC) has categorically denied any nationwide shortage of LPG.

In a statement issued on Monday, the state-owned oil monopoly said the overall supply of LPG is sufficient to meet market demand, describing the current situation as a minor distribution problem affecting only some distributors.

According to the NOC, gas industries imported 47,304 metric tonnes of LPG from the Indian Oil Corporation in January. The country had earlier imported 47,264 metric tonnes in November 2025 and 48,531 metric tonnes in December—volumes that the Corporation said are adequate to meet winter demand nationwide.

NOC spokesperson Manoj Kumar Thakur acknowledged that some gas industries have reported minor supply issues but said the Corporation has already directed them to improve distribution immediately to normalise the situation.

With the March 5 election approaching, Thakur said the NOC has also placed a requisition for an additional 2,000 metric tonnes of LPG under the regular quota for this month as a precautionary measure.

He urged consumers to purchase LPG cylinders only as needed and avoid stockpiling, warning that panic buying and hoarding—driven by fears of shortages—could further disrupt distribution and worsen the situation on the ground. –– With inputs from RSS