KATHMANDU: The Nepal Oil Corporation has reduced the price of international aviation fuel. The corporation issued a press release on Sunday evening and reduced the price of aviation fuel with effective from 12 midnight.
The board of directors of the corporation, which met on Sunday, has passed a policy of fixing the price of international aviation fuel with a maximum profit of 15 percent while Covid’s condition remains stable. Now, the price of international aviation fuel was fixed at US$ 893 per kilo liter. Earlier, the NOC has fixed aviation fule price as US$ 715 per liter. The corporation has reduced the price by US$ 178 per kiloliter.
As of Sunday, the corporation had a 40 percent profit on international aviation fuel. Earlier, the corporation had up to 70 percent profit in international aviation fuel, said NOC spokesperson Binit Mani Upadhyaya.
The corporation has incurred an estimated loss of Rs.50 crore in a single month. The loss of LP Gas was being compensated from aviation fuel. According to the fuel pricing policy of the corporation, there is an arrangement to compensate the loss of LP gas from the profit of international aviation fuel.
International air fares are expected to fall as international aviation fuel prices fall. With the reduction in prices, the government-owned Nepal Airlines Corporation is estimated to save more than Rs. 700 million annually from aviation fuel alone.
