Nepal doubles aviation fuel prices, Raising pressure on airlines and airfares

NOC TIA Fuel Depot Fiscal Nepal

KATHMANDU: Nepal has witnessed a sharp surge in aviation fuel prices, with rates nearly doubling for both domestic and international flights following a fresh adjustment by the Nepal Oil Corporation.

According to the corporation’s press statement released Tuesday, the price of aviation turbine fuel (ATF) for domestic flights has been increased from Rs 127 per liter to Rs 251 per liter, marking a near 100 percent jump.

Similarly, fuel prices for international flights have also seen a steep rise across major airports:

  • In Kathmandu, the price has increased from USD 966 per kiloliter to USD 1,785 per kiloliter
  • In Pokhara, the rate has surged from USD 801 to USD 1,732 per kiloliter
  • In Bhairahawa, prices climbed from USD 789 to USD 1,716 per kiloliter

The dramatic hike reflects adjustments aligned with global fuel price trends and supply costs, though it is expected to significantly impact Nepal’s aviation sector. Airlines operating both domestic and international routes are now likely to face increased operational expenses, which could translate into higher airfares for passengers.

Industry stakeholders warn that such a steep increase may affect tourism recovery, flight frequency, and overall passenger demand, particularly at a time when Nepal is positioning itself as a key destination for international travelers and regional connectivity.

The move also underscores broader inflationary pressures in Nepal’s energy sector, with aviation fuel being a critical component influencing logistics, travel costs, and economic activity linked to tourism and trade.

Fiscal Nepal |
Wednesday April 1, 2026, 11:25:15 AM |


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