Short supply fuels oil crisis in Nepal

KATHMANDU: The fuel crisis in Nepal intensified on Saturday as Indian Oil Corporation (IOC), the main supplier of petroleum products to the Himalayan nation, cut supplies due to non-payment of outstanding bills.

The shortage of petroleum products in Nepal aggravated as IOC cut fuel supplies by 67 per cent to the Himalayan state. The decision to cut the supply was made after state-run Nepal Oil Corporation (NOC) failed to make payments of committed amount to IOC, official sources said.



Nepal has no oil reserves of its own and depends on its giant neighbour India for its needs.

“We have requested IOC to make additional supply, promising to pay more once the banks here start issuing fresh loans, but IOC has not responded yet,” said Digambar Jha, chief of NOC.

Economic Times