The government is to construct fuel storage facilities at Panchkhal in Kavre, Trishuli in Nuwakot and Khaireni in Tanahun.

Under Secretary at the Ministry of Commerce and Supplies Shiva Prasad Tripathi said each facility would have the storage capacity of six thousand kilolitres of petrol. He added that the Chinese government has been approached for constructing the fuel storage facility.

Besides the petrol storage facility, facility for storing diesel, each with the capacity of 1,000 kilolitres would also be constructed at these places, with Chinese government support.

The Ministries of Finance and Foreign Affairs have already forwarded the proposal to this effect at the request of the Supplies Ministry.

Currently only 71,569 kilolitres petrol, diesel and aviation fuel is stored in the country. There is no provision for the storage of kerosene and LPG on a large scale. The present storage capacity for petrol is such that it can store the fuel that will last for a week, that of diesel for 15 days and that of aviation fuel 10 days.

Consumers have been hit hard due to the shortage of fuel owing to the inadequate fuel storage facility in the aftermath of the undeclared border blockade imposed by India on Nepal. In this backdrop, Finance Minister Bishnu Poudel and Commerce Minister Ganesh Man Pun have held frequent discussions on augmenting the present fuel storage capacity in the country.

An agreement was reached whereby the Ministry of Finance would manage the budget required for moving ahead the required process for increasing the fuel storage capacity. Presently, Nepal Oil Corporation has fuel storage facilities at Thankot, the Tribhuvan International Airport, Sinamangal, Bhairahawa, Pokhara, Nepalgunj, Biratnagar, among other places.

Tripathi said a proposal has been presented to the Government of the People's Republic of China for increasing the storage capacity.