Following the Nepal Oil Corporation (NOC) move of increasing the Airborne Turbine Fuel (ATF), the Airlines Operators Association of Nepal (AOAN) has decided to hike fuel surcharge.

AOAN said that they decided to increase the fuel surcharge by Rs.60 to Rs.180 according to the flight distance. The decision in this regard has been made as per the government and the AOAN agreement, AOAN official said. Revision in fuel surcharges has been determined through the scientific method, the source said.

As per the decision, the additional fuel surcharge for the minimum air distance Simara will be Rs. 60 while the long haul Nepalgunj aircraft would charge additional Rs.180 in the existing fuel surcharge.

The NOC on Saturday hiked the price of aviation fuel by Rs 5 per liter for domestic airlines. Price for international carriers too has been raised by US$ 55 per kiloliter.

Domestic airlines would now need to pay Rs 75 per liter of ATF. The NOC was compelled to hike the ATF in line with the international market,” said Digambar Jha – managing director of NOC. Earlier, the NOC had increased the ATF price on Feb. 2009. He said that the price can be adjusted in accordance to the petroleum price list in next month. The ATF has been increased to US$805 from US$750.