Nepal Oil Corporation
Nepal's state-owned petroleum-importing and distribution enterprise, with a legal monopoly over the import and domestic distribution of petrol and diesel.
Last updated August 31, 2026
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Overview
Nepal Oil Corporation Limited (NOC) is Nepal's state-owned petroleum trading and distribution enterprise. It imports, stores and distributes refined petroleum products throughout Nepal, including petrol, diesel, kerosene, liquefied petroleum gas and aviation fuel. Because Nepal is landlocked and has no established domestic oil-refining industry, the country depends on imports to meet national demand. NOC therefore occupies a strategically important position in the economy and transport system, linking international petroleum supply with fuel stations, aviation facilities, industrial users and households across the country. NOC operates as a government-backed monopoly in the import and domestic distribution of petrol and diesel. Its principal external supply relationship has historically been with Indian Oil Corporation Limited, reflecting Nepal's geography: much of the country's accessible road and pipeline connectivity runs through India. Refined petroleum products are brought into Nepal through Indian supply routes and then moved to NOC storage depots and distribution points. This structure makes NOC particularly important during periods of border disruption, transport interruption, international price volatility or domestic fuel shortages. The corporation began with a very small operating base, reportedly storing only two petroleum products in two drums under the leadership of Subarna Bikram Thapa. It subsequently developed a nationwide storage and distribution network. The organization is headquartered in Kathmandu and has provincial offices, branch offices, fuel depots, a retail petrol pump and aviation-fuel depots. Reference material describes total storage capacity of approximately 71,558 kilolitres, including more than 30,000 kilolitres developed across Nepal's different development regions during the corporation's earlier expansion. The same material reports seven provincial offices, three branch offices, two fuel depots, one petrol pump and ten aviation-fuel depots, together with 872 permanent employees and additional contract workers; these operational figures should be understood as time-specific rather than permanent corporate statistics. The Government of Nepal owns approximately 99.46 percent of the corporation. The remaining shares are attributed to four other state-owned institutions: Rastriya Beema Sansthan, National Trading Limited, Nepal Bank Limited and Rastriya Banijya Bank. NOC's highest policy and supervisory authority is its board of directors, which is principally composed of government bureaucrats together with a government-appointed expert member. A major infrastructure development was the Motihari–Amlekhgunj petroleum pipeline, a 69-kilometre cross-border pipeline connecting Motihari in India with Amlekhgunj in Nepal's Bara District. Jointly inaugurated by the prime ministers of India and Nepal on 10 September 2019, the pipeline was designed to make petroleum transportation faster, safer and more efficient than relying solely on road tankers. It was described in the reference material as the first transnational petroleum pipeline in the Indian subcontinent and is operated by Indian Oil Corporation. NOC's public role extends beyond ordinary commercial distribution. Its pricing, inventories and supply decisions affect transport costs, household energy access, aviation operations and inflation in Nepal. At the same time, its monopoly status and dependence on imported refined products expose the company and the country to supply-chain, foreign-exchange and geopolitical risks. NOC is therefore best understood as a strategic public utility and state trading enterprise rather than as a conventional consumer-facing fuel brand.
History
Nepal Oil Corporation was created by the Government of Nepal under the Companies Act, 2021 (1964), with the date of establishment recorded in the Nepali calendar as Poush 26, 2027. The available reference does not provide a directly stated Gregorian founding year, so no Gregorian year is assigned here. The corporation's earliest trading activity was extremely modest. According to the reference account, its operations initially involved storing two petroleum products in two drums under the direction of Subarna Bikram Thapa. From that beginning, NOC developed into the country's central petroleum-importing and distribution institution. Its growth reflected Nepal's structural dependence on imported energy: the country is landlocked, domestic crude-oil exploration has not been demonstrated to be commercially feasible, and Nepal has no established refining capacity capable of meeting national demand. NOC's supply model has consequently been tied to India from the outset. Nepal's eastern, southern and western boundaries connect with India, making Indian transport corridors the practical routes for bringing refined petroleum products into the country. A long-term supply arrangement with Indian Oil Corporation Limited became a defining feature of NOC's operating model. Imported products are received through cross-border logistics, stored in NOC depots and distributed to fuel stations, aviation facilities, industrial customers and household-energy channels across Nepal. Over time, NOC expanded its physical infrastructure beyond Kathmandu into Nepal's development regions and later into the country's provincial administrative structure. The reference material describes seven provincial offices, three branch offices, two fuel depots, one petrol pump and ten aviation-fuel depots. It also reports total storage capacity of approximately 71,558 kilolitres. An earlier account of the corporation's development states that storage capacity in different development regions exceeded 30,000 kilolitres. These figures describe reported stages or snapshots of network development and are not treated as timeless operating metrics. The corporation's legal and institutional position is unusually strong. It is a monopoly state-owned trading enterprise, and private or other companies are not permitted to import petrol and diesel into Nepal. The Government of Nepal holds approximately 99.46 percent of NOC's shares, while the balance is held by four other government-linked institutions: Rastriya Beema Sansthan, National Trading Limited, Nepal Bank Limited and Rastriya Banijya Bank. The board of directors is the corporation's highest policy and control body and is primarily composed of government officials, with an expert member appointed by the government. A major change in the movement of petroleum into Nepal came with the Motihari–Amlekhgunj pipeline. The 69-kilometre line runs from Motihari in India's Bihar region to Amlekhgunj in Nepal's Bara District. It was jointly inaugurated by the prime ministers of India and Nepal on 10 September 2019. The pipeline was intended to reduce dependence on road tanker transport, improve delivery speed and safety, and strengthen the logistical connection between Indian Oil Corporation's supply system and NOC's Nepalese distribution network. The project was described as the first transnational petroleum pipeline in the Indian subcontinent. NOC's development has made it a central institution in Nepal's economy. Its import volumes and distribution performance influence transport availability, aviation operations, household fuel access, industrial activity and consumer prices. The same structure also creates vulnerabilities: Nepal remains exposed to international petroleum prices, cross-border transport conditions, foreign-exchange constraints and disruptions affecting Indian supply routes. NOC's history is therefore the history of a state-managed response to Nepal's geographic and energy-supply limitations.
- 2019
Motihari–Amlekhgunj pipeline inaugurated
[1]India and Nepal inaugurated a 69-kilometre cross-border oil pipeline linking Motihari with Amlekhgunj on 10 September 2019, improving the petroleum supply route into Nepal.
Establishment under Nepal's Companies Act
[1]The Government of Nepal established the corporation under the Companies Act, 2021 (1964). The source records the establishment date in the Nepali calendar as Poush 26, 2027, without providing a Gregorian equivalent.
Expansion from minimal storage to a national network
[1]NOC developed from an operation reportedly storing two petroleum products in two drums into a nationwide network of offices, depots, storage facilities and aviation-fuel installations.
Products and positioning
Strategic state-owned petroleum importer and nationwide distribution monopoly
Automotive fuel
Petrol
NOC imports and distributes petrol for road vehicles through Nepal's fuel-distribution network. Petrol is one of the products covered by the corporation's state-backed import and distribution monopoly.
Automotive and industrial fuel
Diesel
Diesel is supplied for private and commercial transport, machinery and other economic activities. NOC's control over diesel imports makes the corporation a key participant in Nepal's transport and logistics system.
Household and industrial fuel
Kerosene
NOC handles kerosene as part of its broader petroleum-product portfolio. The product is stored and distributed through the corporation's national supply infrastructure.
Household energy
Liquefied petroleum gas
Liquefied petroleum gas is among the petroleum products associated with NOC's national import and distribution role, supporting household and commercial cooking-energy demand in Nepal.
Aviation fuel
Aviation fuel
NOC operates aviation-fuel depots as part of its national distribution network. These facilities support the supply of fuel to Nepal's aviation sector.
Brand decisions
2019
Adoption of a cross-border pipeline supply routeStrategyBackground
Nepal depends on imported refined petroleum and historically relied heavily on road-based transport from India. This created a need for a faster and more secure supply connection.
Action taken
NOC became the Nepalese beneficiary and distribution-side institution for the Motihari–Amlekhgunj pipeline, a 69-kilometre connection from India to Nepal inaugurated on 10 September 2019.
Aftermath
The pipeline was intended to improve transport efficiency, safety and supply reliability for petroleum entering Nepal.
Recent events
Nepal Oil Corporation reduces petrol and diesel prices[2]
Reported:
Nepal Oil Corporation reduced the prices of petrol and diesel by Rs 2, effective February 17, 2020. LPG, kerosene and ATF prices remained unchanged.
Sources5 sources
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