International aviation fuel prices fell

KATHMANDU: JUNE 7 – 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 effect from 12 am last night.

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 the same. Earlier, the price of international aviation fuel was fixed at USD 893 per liter and 715 per liter. The corporation has reduced the price by USD 178 per liter at once.

As of Sunday, the corporation had a 40 percent profit on international aviation fuel. Earlier, the corporation had up to 70 percent in international aviation fuel, said its spokesperson Binit Mani Upadhyaya. According to him, Corona has made a fortnightly (in 15 days) profit of Rs 15 million from aviation fuel in a year.

The corporation has incurred an estimated fortnightly loss of Rs 500 million from cooking LP gas. The loss of LP Gas was being compensated by the corporation 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.

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. -RSS