Nepal to bring fuel from China: Pledges 1,000 tonnes in subsidy
Oct.25, Kathmandu: Nepal government has formally started the process to import petroleum products from China as the Indian blockade continues. The blockade of fuel has resulted to fuel crisis with the country, which had just begun to recover after the devastated earthquake in April.
This step will end the four-decade long monopoly of the Indian Oil Corporation (IOC) as the fuel supplier to Nepal, according to local media.
Newly-appointed Commerce and Supplies Minister Ganesh Man Pun on Saturday said that the government was set to import fuel from the China National Petroleum Corporation as the country is reeling under an acute shortage of fuel products. As the fuel demand normally doubles during winter due to prolonged power outage, the government fears that the crisis could deepen.
“Preparations for a commercial deal with China to import fuel have reached the final stage. We will be dispatching a government-led team soon to China for the purpose,” he said.
Minister Pun also pointed out that diplomatic efforts were also underway to remove trade blockade imposed by Indian government on the southern border of Nepal.
Before signing the agreement, the northern neighbour has pledged 1,000 tonnes of petroleum products as subsidy to Nepal. The government plans to import 10,000 tonnes of fuel after the deal as a temporary measure to make the supply situation normal
The Oslo Times