KATHMANDU, JUNE 26
The Airline Operators Association of Nepal (AOAN), an umbrella organisation of domestic private airlines, has expressed strong reservations against the government's inaction in reducing aviation fuel prices despite its decision to slash the prices of petrol and diesel on June 25.
Stating that the price of aviation fuel in Nepal is comparatively higher than neighbouring countries, the association has urged the government to reduce the revenue collected from the aviation fuel so that the profit of Nepal Oil Corporation (NOC) in the sales of aviation turbine fuel can be maintained at Rs 10 per litre.
On Saturday, a meeting of the ruling coalition had decided to adjust the price of petroleum products by removing taxes to provide some respite to the public who have been suffering due to skyrocketing fuel prices following the war between Russia and Ukraine.
The price of petrol was slashed by Rs 20 per litre to Rs 179 a litre while the price of diesel and kerosene was reduced by Rs 29 per litre to Rs 163 per litre each.
Issuing a notice today, the AOAN stated that the airline sector has been heavily affected due to the COVID-19 pandemic which had caused services to remain shut for eight months.
Despite some increase in public movement, there has not been a major improvement in flow of international tourists, the notice reads. The association has urged the government to decrease the price of aviation fuel and provide it as per the rate of the international market to airline operators.
At present, the NOC is purchasing a litre of aviation fuel for domestic use at Rs 171.39 and to supply to international airlines at Rs 148.32 from the Indian Oil Corporation. Its retail price of ATF for domestic market has been set at Rs 185 per litre and for international airlines at $1.645 a litre.
Thus, the NOC is making a profit of Rs 13.61 per litre (domestic) and Rs 56.67 a litre (international) in the sales of aviation fuel.
A version of this article appears in the print on June 27, 2022, of The Himalayan Times.
