After the price hike of air turbine fuel (ATF) for domestic use at Rs 100 a litre and for international operations at $1500 per kilolitre the Airlines Operators Association of Nepal (AOAN) has today submitted a new air-fare to the Civil Aviation Authority of Nepal (CAAN).
"According to the earlier agreement, the CAAN must give a go-ahead within 48 hours of submitting the proposal of new air-fare," said one operator without being quoted.
Soaring oil prices have forced the state monopoly Nepal Oil Corporation (NOC) to raise ATF prices by Rs 10 per litre for domestic use and $170 per kilolitre (1000 litre) for international operations.
However, this is the second time the price has been hiked in aviation fuel in less than one month, which the state-run sole oil importing and distribution entity, termed an inevitable move to prevent from grave fuel crisis in the country.
On May 13, NOC had hiked the aviation fuel prices by 10 and 21 per cent for domestic and international usages respectively. "According to the agreement, the hike in Rs four will be enough for the operators to raise the airfare," he added.