Kathmandu (dpa) - Kathmandu was facing a fuel crunch Tuesday as the Indian Oil Corporation (IOC) reduced supplies to Nepal due to delayed payment.
Several fuel stations in the capital shut down over the weekend as stocks ran out.
"We owe the IOC about 650 million Indian rupees (14.4 million dollars) as of June 15," said Digambar Jha, general manager of national distributer Nepal Oil Corporation.
"The IOC has cut down the supply by 60 per cent due to the delay in payment."
Supplies were also affected by a strike launched by two groups of tanker drivers, as they compete for the government‘s allocation of routes to and from India.
Officials said the Indian firm had responded positively Tuesday to a request to resume supplies, which were expected to return to normal within a few days.
"The IOC has agreed to give us fuel on credit for now," Jha said. "We will seek loans from financial institutions for the month of July to normalise supply."
Several fuel stations in the capital shut down over the weekend as stocks ran out.
"We owe the IOC about 650 million Indian rupees (14.4 million dollars) as of June 15," said Digambar Jha, general manager of national distributer Nepal Oil Corporation.
"The IOC has cut down the supply by 60 per cent due to the delay in payment."
Supplies were also affected by a strike launched by two groups of tanker drivers, as they compete for the government‘s allocation of routes to and from India.
Officials said the Indian firm had responded positively Tuesday to a request to resume supplies, which were expected to return to normal within a few days.
"The IOC has agreed to give us fuel on credit for now," Jha said. "We will seek loans from financial institutions for the month of July to normalise supply."
