The Nepal Oil Corporation has paid Rs 60-crore to the Indian Oil Corporation Indian Oil Corporation (IOC) on Thursday. Later, the IOC has resumed the petroleum products supply to Nepal. Earlier, the IOC had cut the oil supply to Nepal because of less-payment by NOC.

After the supply cut from IOC, the cry-for-oil situation created in Nepal. The various petrol pumps in Nepal had gone dry.

Now, after some talks, IOC arranged to supply up to 3,000 kilolitres per day to Nepal to restrict the fuel crisis. IOC generally supplies 50,000 to 70,000 kilolitres a month to NOC.

NOC enjoys a monopoly in the import and distribution of fuel in Nepal. It owed IOC Rs 287 crores as of March 31, 2007 and had promised to pay this amount in equal installments of Rs 15 crore per month.

NOC had also signed a new agreement in March and it was free to buy products from any other country other than India. However, due to the supply cut from IOC to Nepal, most petrol stations had gone dry.

The situation had become worse in Nepal and Nepal’s industry, commerce and supplies minister Rajendra Mahato met Shiv Shankar Mukherjee, Indian ambassador to Nepal. He urged Mukherjee to help Nepal to overcome this problem.

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