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  Fuel price cut lowers domestic airfares in Nepal; CAAN revises fuel surcharge across routes

Domestic airfares in Nepal have been reduced after the government lowered the price of aviation turbine fuel for domestic flights by Rs. 40 per litre, prompting the country’s aviation regulator to revise fuel surcharge rates applicable to airline tickets.

The Civil Aviation Authority of Nepal (CAAN) issued a circular directing all domestic airlines and service providers to implement the revised fuel surcharge from Wednesday, following the fuel price adjustment announced by the Nepal Oil Corporation on Tuesday.

CAAN warned that failure to implement the revised surcharge would invite legal action in accordance with prevailing aviation regulations.

The revision comes after Nepal Oil Corporation reduced the price of domestic aviation fuel by Rs. 40 per litre, lowering operating costs for airlines and allowing carriers to pass part of the savings on to passengers through lower fuel surcharge rates.

Mountain Flights See Significant Reduction

Among the biggest beneficiaries are passengers taking scenic mountain flights. The fuel surcharge for mountain flights has been reduced from Rs. 9,235 to Rs. 7,860, a decline of Rs. 1,375.

Revised Fuel Surcharge on Major Domestic Routes

Under the new schedule, CAAN has revised fuel surcharge rates on several domestic routes:


Lower Operating Costs Expected to Benefit Air Travelers

Fuel is one of the largest operating expenses for Nepal’s domestic airlines. Industry experts say reductions in aviation fuel prices directly influence fuel surcharge calculations, resulting in lower ticket prices for passengers.

The latest adjustment is expected to provide some relief to travelers during the busy domestic travel season while slightly easing operating costs for airlines serving remote and regional destinations.

The revised fuel surcharge has taken effect immediately and applies to all domestic scheduled flights operated within Nepal from Wednesday onward.

[ 2 Jul 2026 / fiscalnepal.com ]   
 

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