India Assures Regular Fuel Supply to Nepal for at Least Three Months

India has assured Nepal that fuel supplies will remain regular for at least the next three months despite disruptions in global oil markets triggered by US–Iran tensions.

According to the Ministry of Industry, Commerce and Supplies, there has been no reduction in fuel deliveries to Nepal so far.

Joint Secretary Shivram Pokharel said Indian Oil Corporation (IOC) has informed Nepal that the allocated volume of petroleum products will continue to be supplied even if broader supply constraints emerge. He said the assurance, received in writing on Monday, states that supplies will not be curtailed for three months except under extremely abnormal circumstances.

Although India has reportedly limited gas supplies to its industrial sector to manage domestic demand, the ministry said export commitments to Nepal remain intact. Pokharel noted that Nepal’s demand accounts for only a small fraction of India’s total fuel market, making an immediate disruption unlikely.

Officials said the current stock of petrol, diesel and kerosene is sufficient to prevent any immediate supply crisis.

Limited LPG storage capacity

However, liquefied petroleum gas (LPG) stocks remain limited due to the absence of long-term storage infrastructure. Pokharel said LPG companies import gas from India through bullet tankers and typically maintain stocks sufficient for about one week. As long as imports continue regularly, no immediate shortage is expected, he added.

The ministry said alternative shipping routes could be used if transport from the Middle East, particularly through the Strait of Hormuz, is affected. While disruptions along a single route could cause short delays, a complete halt in supply is unlikely, Pokharel said.

The ministry has urged the public not to engage in panic buying or hoarding, warning that unnecessary stockpiling could create artificial shortages in the market.

International media reports suggest that escalating tensions between Iran and Israel have disrupted oil and gas supplies. Damage to liquefied natural gas (LNG) facilities in Qatar following Iranian attacks has reportedly affected production, while India is preparing to reduce gas supplies to its industrial sector.

Given Nepal’s complete dependence on Indian imports, prolonged disruptions could pose risks to the LPG supply chain. However, former president of the Gas Industry Association Shiva Prasad Ghimire said no immediate problem has been observed in Nepal, cautioning that panic-driven stockpiling could itself trigger shortages.

According to the Nepal Oil Corporation, Nepal consumes more than 45,000 tonnes of LPG per month, averaging about 100,000 cylinders per day. Consumption typically rises by around 15 percent during winter. The corporation said LPG imports have exceeded the monthly average over the past three months.

NOC data show that 47,000 tonnes were imported in mid-December to mid-January, 46,000 tonnes in mid-January to mid-February and 26,000 tonnes by February end. Petroleum products continue to be imported regularly under quota arrangements, with about 7,000 kilolitres entering Nepal daily via pipeline from India.

NOC spokesperson Manoj Kumar Thakur said no fuel shortage has been reported so far. “However, future policy decisions by India could alter the situation,” he said. “India’s one-day fuel consumption is equivalent to Nepal’s annual demand. Even if India faces import difficulties, the immediate impact on Nepal may not be severe.”