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In response to the move on the part of Nepal Oil Corporation (NOC) to increase the Airborne Turbine Fuel (ATF) rate, the Airlines Operators Association of Nepal (AOAN) has decided to hike planes' fuel surcharge.

The NOC on Saturday hiked the price of aviation fuel by Rs 5 per liter for domestic airlines. Price for international carriers too has been raised by US$ 55 per kilolitre. Domestic airlines would now need to pay Rs 75 per liter of ATF.

AOAN decided to increase the fuel surcharge by Rs. 60 to Rs. 180 depending upon flight distance as per the agreement between the government and the AOAN.

The additional fuel surcharge for the minimum air distance Simara will be Rs. 60 while the longer Nepalgunj route would be charged Rs. 180 in addition to the existing fuel surcharge.

The ATF has been increased to US$ 805 from US$ 750.

With the upward revision in the price, NOC will get Rs.1.50 profit now onwards. The price of the ATF had reached US$ 1,300 one-and-a-half-year ago. nepalnews.com

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