Nepal resumes regular fuel distribution after crisis

After more than five months of economic blockade and a resulting fuel crisis, the Nepal government on Friday commenced regular public distribution of petroleum products.

A meeting here on Thursday, chaired by Commerce and Supplies Minister Ganeshman Pun, scrapped the quota system for fuel distribution that had been introduced after blockading of the Nepal-India border by anti-Constitution protestors led to a scarcity of essential commodities including food, fuel and medicines.

The situation has normalised now following resumption of regular fuel supplies by the Indian Oil Corporation after the Medhesi protestors lifted the border blockade last week, Xinhua reported.

According to state-owned oil monopoly Nepal Oil Corporation (NOC), fuel will be distributed to the public on a regular basis from 114 fuel stations in the Kathmandu valley.

However, in the initial phase, NOC has decided to provide only five litres of petrol to two-wheelers and 15 litres to four-wheelers at a time.

The development follows the reopening of the key Raxaul-Birgunj trade transit route last Friday. the Raxaul-Birgunj border point remained blockaded for almost more than four months.

According to NOC, daily requirement of petrol and diesel across the country stands at around 1.1 million litres and 2.6 million litres, respectively.

Though Indian Oil Corporation has increased the supply of liquefied petroleum gas, NOC has yet to decide on resumption of regular distribution of cooking gas cylinders to the public.

The country's monthly demand of LPG hovers at around 30,000 tonnes.