Nepal, March 2 -- A decade-old plan of the Nepal Oil Corporation (NOC) to build infrastructure ensuring a 90-day strategic fuel reserve has remained unimplemented, a failure now magnified by panic buying in Kathmandu as Middle East tensions spark fears of supply disruptions.

The plan was first conceived after the unofficial Indian blockade in 2015, which exposed the nation's vulnerability to fuel shortages. The aim was to align with international norms by expanding storage capacity to guarantee supply during crises, a goal reiterated in the government's budget for fiscal year 2021/22. However, progress has been virtually nonexistent.

Despite earning substantial profits for nearly a decade-including Rs 13 billion in FY 2019/20 and Rs 9.5...