The Nepal Oil Corp (NOC) has announced that it cannot distribute any more fuel as it has run out of stock -- barring what it maintains for emergency purposes.
Imports from India have come to a halt for the past five days, the media quoted NOC director Gopal Bahadur Khadka as saying.
He said fuel can no more be provided to consumers as efforts to import fuel had failed while alternative measures have yet to be found despite continuous efforts, The Himalayan Times reported.
"Our homework (to import fuel) seems to have been insufficient, alternative means have not worked," he said. "So fuel supply will not be easy at the moment."
Khadka also said that the fuel supply would not ease unless the government designated a company to import fuel along with a determination to pay the price that was asked.
The problem must be addressed at a higher level, Khadka said.
Transit points with China have been used as an alternative to bring in petroleum products but not the cooking gas, he said.
He, however, said it had some fuel reserves meant only for special and emergency purposes.
Nepal on Monday asked India to remove the ongoing obstruction at its border and resume the supply of fuel and essential commodities to the Himalayan nation.
A meeting chaired by Prime Minister K.P. Sharma Oli passed a special resolution and asked New Delhi to end the obstruction of medicines and gasoline supply at the India-Nepal border.
"The government urges the Indian government to contribute toward maintaining a cordial relation with Nepal by resuming fuel and essential commodities (supply) to Nepal," Prime Minister Oli's media advisor Pramod Dahal told Xinhua news agency.
Thousands of Nepal-bound cargo vehicles and tankers carrying medicines, basic commodities and fuel have been clogged at the Indian side of the border.
Nepal said the Indian government had imposed an embargo against it since September 22, just two days after the promulgation of the new constitution in Nepal.
"India's reservation on our new constitution is completely irrational as the constitution is purely an internal document of Nepal. We urge India to end the ongoing economic blockade and treat us as a friendly neighbour," Deputy Prime Minister of Nepal Chandra Prakash Mainali said.
Nepal had been fully dependent on gasoline imports from India for years.
However, India has denied any kind of embargo against Nepal and cited ongoing protests by Madhesi parties of Nepal behind such obstructions at the border.