The prime source of cooking purpose were Timber, kerosene, saw dust, haze etc. However these items caused innumerable health hazards to women, rapid deforestation and environment degradation. Hence as an environmental friendly alternative fuel LP Gas was launched to tackle the contentious issues.
On the initiation of Honorable Pashupati Shamsher J.B Rana and his wife Rani Usha Rajya Rana Nepal Gas Udyog was established in 2028 B.S. at Balaju Industrial Estate.
Nepal Oil Corporation was established in 2027 Poush. It started functioning at 2028. His Majesty’s Government of Nepal gave sole authority to import petroleum products from India on the basis of Bilateral Agreement signed between Nepal and India.
At first Nepal imported gas from IOC’s Visakha Patnam Refineries 65 kg cylinders due to road constraints and technical knowhow. Then it used to be refilled in 12.8 kg cylinder which had MV valve (tap system) not like today’s SC Valve. Meanwhile in India 14.2 kg Cylinder were widely popular which had SC valve (ie Self Closing Valve). Nepal implemented the same for general public convenience.
After 1974 AD IOC relocated Barauni Refinery for Nepal as Barauni was very close geographically. Slowly from 5 Mt tanker truck it came in practice of 18 Mt tanker truck for transportation of LP Gas from Indian Refineries.
Meanwhile the demand of LP Gas increased rapidly in Nepal. To meet the increasing demand of LP Gas users, Koshi Gas Udyog Pvt. Ltd. and Lumbini Gas Udyog Pvt. Ltd. was established in 2043 BS with the motive of mass production. In the year 2051 BS, Baba Gas was established to meet the increasing demand.
People in the villages and towns also started using LP Gas rather than using fire wood, kerosene and other materials as fuel. Previously LP Gas was a luxury item at limited homes but at present the scenario is not the same, cooking gas is a necessity. At present LP Gas is not only limited for cooking purpose. It is widely used for water heaters, room heaters, industrial use and also hotels.
Since then limited bottling plant could not meet the increasing demand of cooking gas. Number of bottling plant has been increasing and at present there are 56 plants all over Nepal bottling LP Gas.