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KATHMANDU: The Nepal Oil Corporation (NOC) has decreased the price of international aviation turbine fuel beginning from late midnight.
The NOC has informed about this by issuing a press statement on Sunday evening.
A meeting of the NOC Board of Directors on Sunday agreed to endorse a policy of fixing the price of international aviation fuel with a maximum profit of 15 percent during the COVID-19 crisis.
Earlier, the price of international aviation fuel was US dollar 893 per kiloliter and now it has been fixed at US dollar 715 per kiloliter. The NOC has reduced the price by USD 178 per kiloliter at a single time.
As of Sunday, the NOC had a 40 percent profit on international turbine aviation fuel. Earlier, the profit was up to 70 percent, according to NOC Spokesperson Biditmani Upadhyay.
As he said, it had earned a profit of Rs 15 million fortnightly in a period of one year of COVID-19 crisis.
The NOC, however, is incurring an estimated fortnightly loss of Rs 500 million in the transaction of liquefied petroleum gas. This loss was being adjusted from the profit from the aviation turbine fuel.
According to the NOC fuel pricing policy, there is an arrangement to compensate for the loss of LP gas from the profit of international turbine aviation fuel.
Airfare is expected to go down with the significant cut-off in the price of international aviation fuel price.
With this, the government-owned Nepal Airlines Corporation is likely to save more than Rs 700 million annually from aviation fuel alone.