Nepal is a poor economy with only US$ 350 GDP per capita [1].
The country faces tremendous problems to secure the supply of
petroleum products necessary to meet the national demand for the
transport, residential and industrial sectors. NOC (Nepal Oil
Corporation) is the state owned venture responsible for oil imports
and the only supplier of oil products in the market. According to
NOC, 752,446 m3 of petroleum products (diesel: 39.8% and
gasoline: 13.1%) were imported from India in 2006/2007, mainly
to meet transport needs. The number of vehicles in the country is
increasing at an average rate of 13.5% per year since 1990/1991,
and more than 56% of the vehicles are registered in the Kathmandu
Valley, the capital city of Nepal [2].