Kathmandu, December 5

Airline operators are gearing up to lower the fare of domestic carriers as Nepal Oil Corporation (NOC) has reduced the price of Aviation Turbine Fuel (ATF), effective midnight.

NOC, the state-owned fuel supplier, has decided to slash ATF price by eight rupees per litre for domestic carriers and by $81 per kilolitre for international carriers.

With the new adjustment, ATF for domestic carriers will cost Rs 86 per litre while the fuel will cost $750 per kilolitre for international carriers.

According to Ghanshyam Acharya, the spokesperson for Airlines Operators Association of Nepal (AOAN), a technical committee of the Civil Aviation Authority of Nepal (CAAN) will hold a meeting on Tuesday to revise the airfare to different domestic destinations.

“The new airfare finalised by CAAN committee will have to be approved by CAAN board,” Acharya said, adding airline operators will have to implement the new airfares within 24 hours after it is approved by the CAAN board.

NOC officials said that ATF price has been slashed in line with global fall in aviation fuel price.

“ATF’s price has been reduced as per the new price list sent by Indian Oil Corporation (IOC) for the month of December,” Bhanubhakta Khanal, the NOC spokesperson, said.

Meanwhile, NOC has said that prices of petrol, diesel, kerosene and LPG would remain constant. While petrol costs Rs 97 per litre in the domestic market, diesel and kerosene are priced at Rs 73 per litre each. Currently, LPG costs Rs 1,325 per cylinder.