BBC NEWS | South Asia | Nepal hit hard by India oil cuts: "Parts of Nepal are experiencing fuel shortages after a state-run Indian energy company cut oil supplies to the country by 40% last week.
There have been scenes of panic as car drivers queue for petrol in Kathmandu.
The Indian Oil Corporation (IOC) supplies all of land-locked Nepal's oil. It reduced supplies because of unpaid debts.
The state-run Nepal Oil Corporation (NOC) says it cannot pay the $90m it owes the IOC.
Many petrol stations in the kingdom are now reported to have run out of fuel.
A spokesman for NOC said it would soon run out of reserves."