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

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.