Nepal is in favor of import of fuel from China to cope with the crisis of petroleum products following disruption of supplies through border with India.Nepal doesn't have oil refineries of its own. And thus, buys its oil from India. Nepal could have bought its oil from China (which it did in 1989 after india imposed economic embargo over Nepal.) as well but it is rather expensive.
China has proposed a railway upto Nepal by 2020. China plans rail link with Nepal If constructed, Nepal could use this line as an alternative route for fuel like oil without paying exorbitant costs.Nepal is grappling with a fuel crisis due to the blockade of a key trade point with India by the Madhesi groups opposing the promulgation of the new Constitution. Nepalese officials alleged that fuel crisis has worsened in the country as Indian customs and security officials are stalling cargo movement to Nepal and there had been a stoppage of petroleum supply to Nepal Oil Corporation (NOC) by the Indian Oil Corporation.
