By Gopal Sharma
KATHMANDU, March 12 (Reuters) - Nepal will begin rationing cooking gas amid fears that the Middle East conflict could create a nationwide shortage, an official said on Thursday.
Chandika Prasad Bhatta, executive director of state-run Nepal Oil Corporation (NOC) said authorities would refill only half of consumers' empty cylinders starting from Friday to make its liquefied petroleum gas (LPG) stocks last longer.
The supply squeeze comes as the U.S.-Israeli war on Iran and Tehran's retaliation across the region effectively halts shipping through the Strait of Hormuz, raising energy and transport costs and reducing the output of Middle East oil and gas producers.
Bhatta said consumers were panicking despite repeated assurances that Nepal had enough supplies of LPG.
"The rationing is expected to end the panic and rush for hoarding," Bhatta told Reuters.
Consumers carrying empty cylinders have formed long queues outside refilling plants throughout the country, which is completely dependent on India for its supplies of fuel, including cooking gas.
Officials said Nepal requires about 45,000 cylinders each containing 14.2 kg of cooking gas every month and there was no disruption to supplies.
“We are getting regular supply of fuel including the cooking gas according to our demands," Bhatta said.
(Reporting by Gopal Sharma; Editing by Kirsten Donovan)
