Domestic carriers are increasing fuel surcharge by up to 20 percent effective from May 16. This will make air tickets on domestic routes costlier by up to Rs 775.
Airlines Operators Association of Nepal (AOAN) - the association of domestic airlines - had taken the decision about a week ago, considering the rise in prices of Aviation Turbine Fuel (ATF).
Nepal Oil Corporation (NOC) had raised the price of ATF by Rs 10 per liter, making it Rs 100 per liter last week. Price of ATF has increased by Rs 40 per liter, as compared to the price of December last year.
Domestic carriers had raised fuel surcharge by up to Rs 180 in February, following rise in ATF prices by Rs 10 per liter.
As per existing regulations, airlines can increase fuel surcharge only if ATF price is increased by more than Rs 4 per liter.