Nepal Oil Corporation (NOC) has increased price of Aviation Turbine Fuel (ATF) for domestic airlines by 4.5 rupees as it stands Rs104.5 per litre whereas international airline should pay USD50 more for per kiloliter of ATF which makes it $1125 per kiloliter.
Likewise, the price of petrol is increased by Rs 1 to Rs 111 per litre and Rs 2 on diesel and kerosene which will now cost Rs 95 per litre.
The new price will be effective from Monday. The loss amount of NOC will stand at Rs 7.2 crores within 15 days of implementation of the above changes.
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, there will be increase in airfare also.