Nepal | July 03, 2020

Nepal, China seal deal for import of fuel

Lekhanath Pandey
Share Now:

Kathmandu, October 28

Ending four decades of Nepal’s dependence on India for gasoline supply, Nepal and China today sealed a framework deal to import petroleum products from the northern neighbour.

A Memorandum of Understanding was signed between Nepal Oil Corporation (NOC) and China National United Oil Corporation (PetroChina), a state owned company, regarding supply of petroleum products from China to Nepal, in Beijing, today.

“It’s a framework agreement for import of petroleum products from China,” Joint Secretary Madhu Marasini at the Ministry of Finance, a member of the Nepali delegation, told The Himalayan Times over phone from Beijing.

This agreement has paved the way for commercial import of petroleum products to Nepal, he added. “But we need to finalise the pricing by considering many factors.”

Ambassador of Nepal to China, Mahesh Maskey, who led an 11-member Nepali delegation to strike the deal with Chinese authorities, said that a formal door has been opened to import at least one-third of the fuels required by the country from China.

Managing Director of Nepal Oil Corporation Gopal Bahadur Khadka and PetroChina’s Vice President Zhang Tong signed the agreement, according to a statement issued by the Embassy of Nepal in Beijing.

Officials said that the two sides are yet to finalise pricing details and timeline for the supply of fuels to be brought from China. The Chinese side has told the Nepali delegation that they will try to fix a price close to the current market rate in Nepal despite the geographical difficulties of ferrying it via the Tibet route and also the fact that the standard of fuel will be of higher quality than the fuel provided by India.

It is learnt that efforts are under way to make it possible to buy Chinese fuels within the next three to four weeks, by completing all procedures.

A separate contract was also signed between Nepal and China in Beijing today for the speedy delivery of 1,000 metric tonnes petroleum grant, which China has provided to Nepal as relief from the current shortage, according to the embassy. The grant will be ferried to Nepal via the Kyirong border point within a week, an official said.

According to the Nepal embassy in Beijing, the Nepali delegation held talks with high level officials of China’s Ministry of Foreign Affairs and Ministry of Commerce to finalise the MoU and other related issues of bilateral cooperation, earlier today.

Nepal is currently 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.

Yesterday, China’s Foreign Ministry Spokesperson Hua Chunying had expressed Beijing’s readiness to offer necessary assistance to fuel-strapped Nepal.


IOC refills Nepal’s tankers

KATHMANDU: Fuel tankers sent from Nepal to India to bring petroleum products were refilled as during normal times on Wednesday.

Altogether 18 out of 22 fuel tankers were refilled in Barauni depot of Indian Oil Corporation, the same depot had refilled 35 tankers on Tuesday, according to Bhanubhakta Dhakal, NOC central region chief.

Due to protests in Birgunj, IOC has been providing fuel from Barauni depot instead of Raxaul depot.

Likewise, Central Board of Excise and Customs of India permitted NOC to re-route fuel tankers and liquefied petroleum gas bullets stranded at Raxaul after Tarai-based parties staged a sit-in at the no man’s land near Birgunj border.

Dhakal said around 250 LPG bullets and 150 fuel tankers are stranded at the Indian frontier in Raxaul.

Those tankers and LPG bullets will be sent to Barauni and brought to Nepal through Biratnagar via Jogbani.

A version of this article appears in print on October 29, 2015 of The Himalayan Times.

Follow The Himalayan Times on Twitter and Facebook

Recommended Stories:

More from The Himalayan Times:

TUTH. Tribhuvan University Teaching Hospital, Teaching Hospital, Maharajgunj

49-day-old infant diagnosed with Covid-19 passes away in Kathmandu

KATHMANDU: A 49-day-old infant diagnosed with Covid-19 passed away on Wednesday evening at Tribhuvan University Teaching Hospital (TUTH), where he was receiving treatment. Ministry of Health and Population, in its regular press briefing, confirmed the passing of the baby. The infant -- resident o Read More...

PM advised to reach out to rival NCP faction

Kathmandu, July 1 A day after Prime Minister KP Sharma Oli was asked by Nepal Communist Party (NCP) Standing Committee members to resign from both the posts of prime minister and party co-chair, the PM was advised by his aides in the party to reach out to the rival faction. Oli held a meeting Read More...

Nepal could witness yet another huge locust invasion

Kathmandu, July 1 The Locusts Information Centre has warned that a large swarm of locusts is likely to enter Nepal from India over the next couple of days. According to the centre, the swarm of locusts is headed towards Darjeeling from Bhagalpur and Motihari in Bihar. As the swarm is likely to Read More...

Hunger strike by youth activists enters sixth day

KATHMANDU, JULY 1 Iih, 26, who initiated ‘Enough is Enough’ campaign demanding effective handling of the COVID-19 pandemic by the government, has been on fastunto-death in a sattal (rest house) at Patan Durbar Square as his hunger strike entered the sixth day today. Iih has been joined by Read More...

‘Citizenship bill not inclusive’

KATHMANDU, JULY 1 Although the constitution is progressive in terms of citizenship issues it does not guarantee equality. Even after five years of the promulgation of the constitution, necessary amendments have yet to be made to Citizenship Act-2006, as per the provisions of the constitution. Read More...


Mexican president to hold first meeting with Trump, Democrats unimpressed

MEXICO CITY: Mexico's president and his US counterpart Donald Trump will hold their first meeting on July 8 in Washington, officials said on Wednesday, sparking complaints from Democratic lawmakers, who saw it as a political stunt with elections looming. President Andres Manuel Lopez Obrador ha Read More...

Twitter removes image tweet by Trump over copyright complaint

Twitter Inc has taken down an image tweet by the US President Donald Trump on June 30, in response to a report from a copyright holder. Twitter now displays the message “This image has been removed in response to a report from the copyright holder,” in place of the tweet. News website Axio Read More...

Gunmen kill 24 people in attack on Mexican drug rehab center

MEXICO CITY: At least 24 people were killed in an armed attack on a drug rehabilitation facility in the central Mexican city of Irapuato, Mexican police said on Wednesday, underlining the challenge the government has in fulfilling a pledge to stop gang violence. Police in the city in Guanajuato s Read More...