The lack of fuel (which Shrestha writes about in detail, so if you're interested, I recommend his piece) is causing people to revisit the government's January 2004 decision to increase ethanol use in the country, something that hasn't moved forward much since the decision was made.
Umesh Prasadh Dahal, deputy managing director of marketing of the Nepal Oil Corporation, told Shrestha that,
"There has been absolutely no development in the biofuel sector. The problem is petrol is a political tool and the government has not provided any subsidies for biofuel here."
Electric vehicles aren't getting any love, either. Nepal offers extra taxes for EV buyers instead of tax breaks. For a solid article that gives the green car snapshot in Nepal as good as anything I've seen (OK, I admit haven't seen much on this specific topic), check out the whole thing.
[Source: Renewable Energy Access]