Domestic airfares see biggest ever hike due to West Asia tensions

Airfare to Dhangadhi has increased by Rs 5,480 to Rs 11,000.

Chaitra 18, 2082

Suraj Kunwar

Domestic airfares see biggest ever hike due to West Asia tensions

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The Civil Aviation Authority of Nepal has said that the fuel surcharge for air travel on the Kathmandu-Dhangarhi route has increased by Rs 5,480 in one go. Until Tuesday, the airline was charging only Rs 5,610 for fuel on this route. Now, the fuel surcharge alone has increased to Rs 11,990. Now, the fuel surcharge alone for air travel on Dhangadhi has reached Rs 11,990. This includes Rs 2,538 in airfare, Rs 500 in airport service fee, and Rs 3,290 in value-added tax. This is the minimum fare. The airline calls it the lower limit.

Meanwhile, the fuel surcharge on mountain flights from Kathmandu has increased by Rs 4,255 to Rs 8,615. The minimum fare on mountain flights has increased by Rs 11,342.

The fuel surcharge on Kathmandu-Surkhet has increased by Rs 4,285 to Rs 8,657. Similarly, the Kathmandu-Nepalgunj route has increased by Rs 4,45 to Rs 8,185, the Kathmandu-Bhadrapur route by Rs 3,725 to Rs 7,540, the Kathmandu-Pokhara route by Rs 1,970 to Rs 3,985, the Kathmandu-Janakpur route by Rs 1,600 to Rs 3,230, the Kathmandu-Bharatpur route by Rs 1,330 to Rs 2,690, the Kathmandu-Biratnagar route by Rs 2,980 to Rs 6,020, the Kathmandu-Bhairahawa route by Rs 2,555 to Rs 5,170 and the Kathmandu-Simara route by Rs 1,120 to Rs 2,260. Only fuel surcharge has increased. In this, passengers have to pay additional airfare, airport service charges and value added tax. Airlines determine airfare by adding four headings to any domestic flight ticket.

The new airfare was implemented by the airline from Tuesday. ‘Earlier, there was a two-day wait for the normal increase in the price of aviation fuel. This time, the increase was implemented from Tuesday night, so the new fuel surcharge has been implemented from Wednesday,’ Rupesh Joshi, treasurer of the Airline Operators Association and director of Buddha Air, told Kantipur.

Domestic flight fares include fares, fuel surcharges and airport service charges. After the price of aviation fuel has increased by about 98 percent recently, Nepal Oil Corporation has increased the price of fuel sold at Rs 127 per liter to Rs 251 from Tuesday night. Along with this, the Civil Aviation Authority of Nepal has made a new fare list public for air service providers on Wednesday.

Domestic airfares see biggest ever hike due to West Asia tensions

The fare for any domestic flight ticket is made up of four elements: fares, overhead costs (fuel), VAT and airport service charges, says Gyanendra Bhul, spokesperson of the authority. Among these, the fare also changes when the fuel charges fluctuate. ‘Fuel accounts for about 40 percent of the air ticket. But fuel surcharge has doubled in every sector at a rate never seen before in Nepal,' said Joint Spokesperson Bhul, 'This is an unusual situation at the moment. If the situation eases soon, the aviation fuel fee will also be revised.'

According to the Oil Corporation, the price of petroleum products is continuously increasing in the international market due to the ongoing war in the Middle East. This is why it has incurred a loss of about Rs 5 billion in the last 15 days, according to a statement issued by the Corporation.

The Corporation has stated that it has incurred a loss of about Rs 5 billion in the last 15 days due to the price increase. According to the Corporation, according to the new prices received from the Indian Oil Corporation, the price of petrol has increased by Rs 41.60 per liter, diesel by Rs 94.93, aviation fuel by Rs 123.80 and LP gas by Rs 190.36 per cylinder. However, the corporation has said that it has not adjusted the prices keeping in mind the interests of the consumers and as a result, there is a loss of Rs 47.12 per liter in petrol, Rs 133.45 per cylinder in diesel and Rs 416.37 per cylinder in LP gas.

The corporation claims that it has suffered a loss of Rs 13.21 billion due to failure to adjust the prices. The corporation also says that although the supply is in line with demand, the inability to make payments on time has added challenges to management. As per the decision of the corporation's board of directors, the price of aviation fuel has been increased by Rs 124 per liter for domestic flights to Rs 251, effective from 1:00 am on 17 Chaitra 2082. For international flights, the price has been increased by US$ 819 per kiloliter in Kathmandu to US$ 1,785. The corporation has stated that the break-even price of aviation fuel sold in Pokhara and Bhairahawa has been set.

The retail prices of petrol, diesel/kerosene and LP gas have been kept unchanged. The corporation has stated that it is trying to provide relief to consumers by utilizing the price stabilization fund.

Suraj

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