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Fuel-starved Nepal signs agreement with China to supply fuel, ending India's monopoly

  • FILE- In this Sept. 28, 2015 file photo, Nepalese motorists line up to buy fuel on their motorbikes at a fuel pump run by the Nepalese army in Kathmandu, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday.(AP Photo/Niranjan Shrestha, file)

    FILE- In this Sept. 28, 2015 file photo, Nepalese motorists line up to buy fuel on their motorbikes at a fuel pump run by the Nepalese army in Kathmandu, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday.(AP Photo/Niranjan Shrestha, file)  (The Associated Press)

  • FILE- In this Sept. 28, 2015 file photo, Nepalese motorists wait for their turn to fill fuel on their motorbikes at a fuel pump run by the Nepalese army in Kathmandu, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday.(AP Photo/Niranjan Shrestha, file)

    FILE- In this Sept. 28, 2015 file photo, Nepalese motorists wait for their turn to fill fuel on their motorbikes at a fuel pump run by the Nepalese army in Kathmandu, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday.(AP Photo/Niranjan Shrestha, file)  (The Associated Press)

  • FILE- In this Sept. 24, 2015 file photo, Nepalese oil tankers and commercial trucks stand stranded near a gate that marks the Nepalese border with India, in Birgunj, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday. (AP Photo/Ram Sarraf, file)

    FILE- In this Sept. 24, 2015 file photo, Nepalese oil tankers and commercial trucks stand stranded near a gate that marks the Nepalese border with India, in Birgunj, Nepal. Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas, after India restricted its supplies as a result of ongoing political protests in the Himalayan nation, officials said Thursday. (AP Photo/Ram Sarraf, file)  (The Associated Press)

Fuel-starved Nepal has signed an agreement with China to provide gasoline, diesel and cooking gas after India restricted its supplies as a result of ongoing political protests in the Himalayan nation.

Nepal Oil Corporation official Deepak Baral said Thursday that a memorandum of understanding was signed with China National United Oil Corporation in Beijing. He says details still need to be worked out.

It would be the first time Nepal would be getting fuel from China, effectively ending India's monopoly on the fuel supply.

India has restricted fuel supplies since Madhesi ethnic groups in southern Nepal, with whom it has close cultural ties, began protesting Nepal's new constitution, seeking more rights.