The Airlines Operators Association of Nepal (AOAN) has reduced airfares following Nepal Oil Corporation (NOC)'s decision to slash the aviation fuel price. AOAN on Monday said that the reduced airfares will come into effect from January 11. According to AOAN, the airfare on the Kathmandu-Dhangadhi route has come down by Rs 885 while the airfare on the Kathmandu-Simara sector has been reduced by Rs 180. Likewise, the airfare for mountain flights has come down by Rs 685. As the government controls the price of a plane ticket and airlines are not allowed to increase the airfare, domestic airlines generally increase or decrease the fuel surcharge in response to the fluctuation in the fuel price hike. The fuel surcharge is revised if fuel prices fluctuate by at least Rs 4 per liter.

According to domestic airline operators, fuel prices account for up to 40 percent of the total cost of operations in Nepal.

NOC slashed prices of petrol, diesel, kerosene, and aviation fuel (for domestic & international airliners) on Sunday. The meeting of the oil monopoly's board decided to reduce prices of petrol, diesel, and kerosene by Rs 3 per liter each. Similarly, the price of aviation fuel for domestic airlines has been slashed by Rs 20 per liter and for international airlines by Rs 30 per liter. With the new pricing, a liter of petrol will cost Rs 175, and diesel and kerosene will cost Rs 172. As per the revised price, the price of aviation fuel for domestic airlines is now Rs 170 per liter and for international airlines is USD 1.42 per liter. The price of LPG gas has remained the same, which is Rs 1,800 per cylinder. The NOC revised the prices following instruction from Prime Minister Pushpa Kamal Dahal who on last Thursday had instructed the secretary at the Ministry of Industry, Commerce, and Supplies to reduce the price of petroleum products. The secretary at the Ministry of Industry, Commerce, and Supplies chairs the NOC board.    

Route	Reduction	New Airfare
Mountain Flight	Rs 685	Rs 14,205
KTM-Bhadrapur	Rs 600	Rs 12,355
KTM-Biratnagar	Rs 485	Rs 9,720
KTM-Janakpur	Rs 260	Rs 5,600
KTM-Bharatpur	Rs 215	Rs 4,775
KTM-Pokhara	Rs 320	Rs 6,665
KTM-Bhairahawa	Rs 410	Rs 8,265
KTM-Nepalgunj	Rs 655	Rs 13,325
KTM-Dhangadi	Rs 885	Rs 16,140
KTM-Tumlingtar	Rs 370	Rs 7,835
KTM-Simara	Rs 180	Rs 4,060
KTM-Surkhet	Rs 690	Rs 14,305
KTM-Rajbiraj	Rs 411	Rs 8,344