Oil prices drop in Nepal soon after launch of first trans-border pipeline

With the launch of the first trans-border pipeline between India and Nepal on Tuesday, the Nepal Oil Corporation cut down the price of petrol, diesel and kerosene by 2 Nepalese Rupee per litre.

The Petroleum Pipeline project which completed ahead of the deadline set at the time of agreement was inaugurated by Prime Minister Narendra Modi and his Nepalese counterpart KP Sharma Oli via a video conference.

"NOC has reduced the prices of Petrol and Diesel/Kerosene by Rs 2 per litre due to saving through Pipeline transfer of petroleum products too," Susheel Bhattarai, Deputy Executive Director of NOC wrote over facebook.

With the inauguration of the pipeline project, Kathmandu would save hundreds of thousands of rupees that would have incurred at the time of the transport of petroleum from India to Nepal.

The Motihari-Amlekhgunj Oil pipeline materialised during Modi's Nepal visit of 2014. It was first proposed in 1996 and a formal agreement was signed on August 2015.

The new pipeline would soon be able to supply 394 kilolitres of petroleum products per hour and a total of 3,000 kilolitres of diesel will be imported per day through the pipeline.