Kathmandu, November 17

Nepali and Chinese authorities are all set to hold a meeting in Beijing this week to finalise the pricing and supply routes for import of petroleum products from China to Nepal.

A composite team of various stakeholders, including ministries of Supply and Commerce, Finance, Foreign Affairs and Nepal Oil Corporation, is expected to leave for China in a couple days to negotiate fuel supply from China on a commercial basis, according to Sushil Bhattarai, deputy acting general manager of Nepal Oil Corporation.

The two sides had sealed a framework deal in Beijing on October 28 to buy at least 33 per cent of Nepal’s domestic consumption of all petroleum goods, including gas, diesel, petrol, and aviation fuel, from China.

Though Nepal had invited Chinese officials to visit the country for the deal, Chinese officials invited Nepali authorities to China to discuss pricing and other aspects of the deal in detail, said Bhattarai.

“Once Commerce and Supply Minister Ganesh Man Pun arrives from China visit, we will meet and decide about the team and departure date,” he added. Meanwhile, both Chinese and Nepali authorities have become concerned about speculative news and information regarding the Nepal-China oil deal in both social and mainstream Nepali media, sources said.

“Media coverage is good but these should be fact-based,” said a Foreign Ministry official. Nepali media have started predicting fuel prices and tentative date of import from China. Officials, who are privy to the development, reiterated that no decision had been taken in this regard so far since the final negotiation was yet to happen.

Foreign Secretary Shankar Das Bairagi said fuel prices would largely be contingent upon several factors, including its standard, taxation, transportation and distance from supply base to the receiving depot, among others.

“The Chinese side doesn’t like to be expectant without a substantive result,” a diplomatic source told The Himalayan Times. “China is serious about sending fuel to Nepal as quickly as possible, but it’s too early to presume the cost and routes,” it added.

There are two crossing routes via Kyirong of Rasuwa or Tatopani of Sindhupalchowk  to import fuel. The Nepali side has stated desire to buy fuel from Tatopani entry point as the road is relatively better and shorter.

While the framework agreement was signed in Beijing last month, the Nepali side had requested the Chinese side to fix the prices in and around the current market rate of Nepal and also sought tax concession.

It’s learnt that the Chinese side itself is doing rigorous homework to fix the price as they will be selling petroleum products to Nepal for the first time.