The Indian Oil Corporation (IOC) has informed the Nepal Oil Corporation (NOC) that it would start supplying petroleum products as soon as Nepal’s ‘political issues’ are settled, NOC officials said.

Responding to NOC’s letter, the IOC said that it has been unable to pump sufficient quantity of fuel due to the ongoing ‘political issue’ in Nepal. As a result, there has been acute shortage of petroleum products, forcing the government to ration petroleum products, implement odd-even system in vehicular movement and ask international airlines to refuel abroad.

The state-owned oil monopoly had written to the IOC three days ago over its intention behind curtailing petroleum exports to Nepal. The state-owned oil supplier had asked the IOC to dispatch fuel as per the contract signed between the two government agencies.

Sources at the NOC said that based on IOC’s indication it is unclear when the fuel import would come to a normal situation. Petroleum has always been a political commodity in Nepal.

As per the new petroleum agreement signed in 2012 between the two companies, the IOC does not have an exclusive right to cut supplies. The NOC officials said under the accord that is renewable every five years, the IOC is required to meet NOC’s gasoline demand. While the IOC has been a sole exporter to Nepal since 1974, the pact states that Nepal can also import petroleum products from other sources too. NOC Managing Director Gopal Bahadur Khadka said the IOC was keen to resolve the ongoing shortage as soon as the political issues are settled in Nepal.

“IOC officials have committed to supply petroleum products for 24 hours as soon as the political issues are settled at the government level,” he said. IOC started to cut products to Nepal since the constitution was promulgated on September 20. With the Indian side imposing restriction on Nepal-bound goods, the IOC has also curtailed exports citing various reasons such as mechanical failure, ‘order of higher authority’ and traffic congestion.

 Meanwhile, the NOC on Tuesday distributed 339 kilo litres of fuel from 69 petrol pumps in the Kathmandu valley. That included 236kl of diesel through 56 refueling stations, 103kl of petrol through 13 state-owned outlets.