The New Nation - Internet Edition

PTI, Kathmandu

The authorities in Nepal have stopped the distribution of petroleum products so as to save on the precious commodity during the Dashain festival after India's oil major IOC sharply cut supply because of outstanding dues in the last few months.

Nepal Oil Corporation (NOC) officials said it has stopped the supply of petroleum products for four days beginning from October 19.

The decision to stop distribution comes at a time when most of the gas stations in Kathmandu are running dry. On Thursday, serpentine queues of vehicles could be seen at the gas stations of Nepal Police and the army. Supply of petroleum in the country has been erratic since last few months after the Indian Oil Corporation (IOC) reduced supply citing the NOC's failure to clear the dues.

The officials said the supply would be resumed from October 23 as the NOC has imported sufficient quantity from India for normal distribution after the Dashain festival. The monthly loss of NOC, which is the sole supplier of petroleum in Nepal, has reached Rs 38 crore.