Airfare raised after fuel surcharge increases with increase in ATF price

The fuel surcharge for domestic flights has been increased after Nepal Oil Corporation (NOC) hiked the aviation turbine fuel (ATF) by Rs 4.5 per liter which now stands at Rs 104.5 per liter. The international airline should pay USD50 more for per kiloliter of ATF which makes it $1125 per kilolitre.

The Airlines Operators Association of Nepal (AOAN) has sought the concurrence of revised Fuel Charge for both in Trunk route and STOL route applicable from mid-night of 22nd August 2018.

The fuel surcharge has been increased by a minimum of Rs40 to a maximum of Rs200 for the trunk sector. The government controls the price of a plane ticket while airlines are allowed to fix the surcharge if fuel prices fluctuate by at least Rs4 per litre. As the price has been hiked by Rs 4.5 so, the fuel surcharge has been hiked thus raising the airfare.

With the revised airfare, the flight from Kathmandu to Dhangadhi (longest domestic route) will cost Rs13,070 with Rs4,615 as the increased fuel surcharge. Likewise, the shortest domestic route, Kathmandu to Simara, will cost Rs3,210 with Rs940 as the increased fuel surcharge. Similarly, mountain flight will now cost Rs11,625 which includes Rs3,585 as the hiked fuel surcharge.

On the other hand, the fuel surcharge has been fluctuated by a minimum of Rs 30 to a maximum of Rs 150 for the STOL (Short Takeoff and Landing) sector.

The new ATF fuel price is effective from 20th August 2018. The loss amount of NOC will stand at Rs 7.2 crores within 15 days of implementation of the above changes.

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