Nepal-India Fuel Pipeline: Big Savings and Smooth Supply

The Nepal-India cross-border petroleum pipeline has completed one year of operation. Running from Motihari in India to Amlekhganj in Nepal, the pipeline has already brought in over 634 million liters of fuel, according to Nepal Oil Corporation’s Madhesh office.

So far, the pipeline has delivered:

• Diesel: 614.35 million liters
• Petrol: 20.15 million liters
• Kerosene: 0.41 million liters

Daily, the pipeline can transport up to 6,000 kiloliters, though current demand hasn’t reached that level yet. About 70% of Nepal’s fuel needs are now met through Amlekhganj. Fuel is distributed from here to major cities and local pumps across the country.

The project was jointly inaugurated by Nepal’s then Ex-Prime Minister KP Sharma Oli and Indian PM Narendra Modi on September 9, 2019. Diesel started flowing immediately, petrol in October 2024, and kerosene in November 2024. The 69.2 km pipeline includes 33 km in India and 36.2 km in Nepal.

The Amlekhganj depot, the largest and most modern in Nepal, has expanded storage capacity with four new vertical tanks. It can now store:

• Petrol: 17,500 kiloliters
• Diesel: 27,500 kiloliters
• Kerosene: 2,200 kiloliters

Old and new tanks combined allow 94,000 kiloliters storage. The depot also uses fire control systems and Transmix tanks to maintain fuel quality.

Transporting fuel via pipeline reduces road accidents, theft, adulteration, and environmental impact. Annual transportation costs have dropped by NPR 300 crore, allowing Nepal Oil Corporation to lower fuel prices for consumers.

The government has prioritized two more pipelines:

• Siliguri (India) – Charali (Jhapa)
• Amlekhganj – Lothar

The Amlekhganj–Lothar pipeline will stretch 62 km with new greenfield terminals and advanced storage tanks. It will store 91,900 kiloliters of fuel, supply 273 kiloliters per hour, and is expected to be completed within three years. Total project cost is estimated at NPR 14.96 billion.