Government Plans to Bring Aviation Fuel from India via Pipeline to Cut Costs

The government of Nepal is preparing to propose importing aviation fuel through a pipeline during the fifth Nepal–India Joint Working Group on Petroleum and Gas meeting scheduled in New Delhi on December 8.

According to government officials, transporting aviation fuel from India currently costs millions of rupees. To reduce this expense, the proposal to use a pipeline will be presented at the meeting. “We are planning to propose bringing aviation fuel via pipeline from India,” said a senior official from the Ministry of Industry, Commerce, and Supplies. “We will also put forward a proposal for constructing a depot.”

Currently, even if India approves the pipeline import of aviation fuel, Nepal lacks a depot to store it. The government plans to request India’s assistance in depot construction.

The Cabinet has already approved a delegation led by Ministry of Industry, Commerce, and Supplies’ Joint Secretary Shivram Pokharel to participate in the meeting. Nepal began transporting diesel via pipeline for the first time in September 2019, and regular imports of petrol and kerosene via pipeline started in early 2025. The upcoming initiative aims to bring aviation fuel through the same method.

Officials said the Nepali delegation will raise agendas to facilitate smoother fuel supply. “There will also be detailed discussions on advancing ongoing projects,” the officials added. The second phase of the Motihari–Amlekhganj cross-border petroleum pipeline has been completed. The meeting will also discuss the timeline and modality for India to hand over the pipeline.

Under the first phase of the petroleum pipeline project, the pipeline was laid from Motihari, India, to Amlekhganj, Nepal. The second phase increased storage capacity at Amlekhganj and introduced automation. Four new vertical tanks were built in the depot to store petrol, diesel, and kerosene oil. Two transmix tanks and a fire control system were installed to maintain the quality of imported petroleum products.

Following the expansion, Amlekhganj depot can now store 17,500 kiloliters of petrol, 27,500 kiloliters of diesel, and 2,200 kiloliters of kerosene oil, making it Nepal’s largest and most modern depot. Construction of the depot began in 1973 and it became operational in 1976, covering 67,724 square meters.

Officials clarified that discussions on private sector proposals to import and sell fuel from India will not take place during this meeting, as no policy decision has been made on the matter.