Nepal Foreign Affairs (Kathmandu, Oct. 28)–Amid acute fuel shortage in Nepal following India’s deliberate economic blockade on Nepal, China and Nepal have signed a Memorandum of Understanding in Beijing in order to supply petroleum products from China to Nepal, on Wednesday.
The state-owned companies of between the two countries—Nepal Oil Corporation and China National United Oil Corporation—inked the petroleum supplying deal on Wednesday, according to a press release issued by Nepal’s Embassy in Beijing. With the MoU signing in China, India’s monopoly on petroleum products in the Nepali market has come to an end.
Indian Oil Corporation (IoC) had been a sole trader of petroleum products to Nepal for many years. The IoC has stopped fuel and gas supplies to Nepal as per the instruction of the Indian government after Nepal promulgated the new constitution on Sept 20 this year.