China to supply gasoline to fuel-starved Nepal

Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday.

The Nepalese embassy said in a statement a memorandum of understanding had been signed between Nepal Oil Corp and National United Oil Corp (PetroChina), without giving details of the deal.

Inadequate supply of oil to the Terai region in Nepal from Kathmandu could trigger yet another internal bickering in the country, especially after India has resumed normal shipments.

Earlier this week, China also announced it would give Nepal 1.3 million liters (340,000 gallons) of gasoline to help ease severe shortages.

October 29, 2015- Nepal signed a historic oil trade deal with China on Wednesday, ending a four-decade supply monopoly of the Indian Oil Corporation (IOC).

About Beijing stepping up gasoline and meals provides by way of its just lately reopened border in Tibet, Lu stated “as a pal and neighbour of Nepal, China hopes that Nepal can have secure home state of affairs after the passage of the brand new structure”.

Nepal is now reeling under acute shortage of petroleum products after Madhes-based parties intensified their agitation in the wake of the promulgation of the new constitution on September 20 and obstructed the Nepal-India border. The inhospitable climate along Nepal’s border with China will not allow that, they insist.

Kathmandu has been forced to ration fuel after protests against a new constitution strangled supplies from India into the landlocked nation.

Nepali and Chinese officials were not immediately available comments.