KATHMANDU: Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas after India restricted its supplies as a result of ongoing political protests in the Himalayan nation.

Nepal Oil Corporation official Deepak Baral said Thursday that a memorandum of understanding was signed with China National United Oil Corporation in Beijing.

Examine: Oil-starved Nepal seeks suppliers to bring fuel by air

He says details still need to be worked out. It would be the first time Nepal would be getting fuel from China, effectively ending India's monopoly on the fuel supply.

India has restricted fuel supplies since Madhesi ethnic groups in southern Nepal, with whom it has close cultural ties, began protesting Nepal's new constitution, seeking more rights.

Earlier this week, China also announced it would give Nepal 1.3 million litres of gasoline to help ease severe shortages.

Also read: Nepali leader says India 'breaking international law'

The gasoline will be brought to a town near the China-Nepal border. It will take about 100 tanker trucks to transport it to the capital, where it was likely to arrive by early next week.

China and Nepal share a border that has the world's highest mountains, but its two crossings were damaged by an April earthquake and one reopened this month.

Also read: Anti-India protests erupt in Nepal

Editorial

Updated 16 Aug, 2026

Balochistan’s wounds

The state has alienated even those political elements in Baloch society that have been peacefully pursuing their rights.
16 Aug, 2026

Tax scheme

THE Hyderabad SITE Association of Trade and Industry has formally endorsed new measures introduced to ease...
16 Aug, 2026

In choppy waters

MORE than three months after Somali pirates captured an oil tanker carrying a multinational crew, including 11...
Updated 15 Aug, 2026

Governance test

EVER since the interior minister called for smaller administrative units to improve governance, the question of new...
15 Aug, 2026

Sailors’ killing

THE killing of at least three Pakistani sailors in an apparent Houthi attack targeting a vessel in the waters of Bab...
15 Aug, 2026

Lethal celebrations

IT is a familiar tale. Every year, occasions for national celebration turn into fear and mourning just because some...