The first cross-border petroleum pipeline of South Asia has helped Nepal to save Nepali 2 billion rupees annually in freight charges Nepal earlier has been spending 2 billion rupees as freight expenses to bring the petrol from Patna in India. The pipeline was operationalised in September 2019.
“Not only the freight charges, it also has helped in avoiding the vagaries of transportation by tanker trucks,” said Surendra Kumar Paudel, Managing Director of Nepal Oil Corporation.
It takes at least 14 hours to transport oil from Patna in India to Amlekhganj. Indian Oil Corporation has been the sole supplier of fuel to Nepal Oil Corporation since 1974.
In February this year, a team from the Indian Oil Corporation, which built Amlekhganj pipeline, conducted a survey for pipeline connecting Nepal Oil Corporation’s depot at Charali, Jhapa with Siliguri.
According to the Trade and Export Promotion Centre, Nepal imported petroleum products worth 164 billion Nepali rupees in last fiscal year. India fulfils all of Nepal’s oil requirements.