Indian Oil Corporation (IOC) has resumed normal supply of petroleum products to Nepal, newspaper The Kathmandu Post reported on Saturday.

"India has said it would not curtail supply and would issue us with the quantity we demand," Commerce Minister Hridayesh Tripathy was quoted as saying.

"We talked with all the Indian officials concerned, and have started receiving normal supply from Friday," he said.

The sole Indian supplier was curtailing supply by 20 percent every month since the last three months, according to the daily.

It sparked a petrol shortage in the Nepali capital Kathmandu Valley on Friday.

"Worse, petrol stock at Thankot depot has touched the lowest possible level and we cannot pump out further fuel in the market from the depot from Friday," Managing Director of Nepal Oil Corporation (NOC) Bishwa Nath Goyal told reporters.

"India has lowered the supply, urging NOC to pay outstanding dues that currently stands over 9 billion Nepali rupees (128 million US dollars)," he said.

The impact of short supply was first visible Thursday afternoon in the valley. It went on to build a long queue of consumers at major petrol pumps by the evening.

Source: Xinhua