Flying within Nepal has become significantly more expensive after the Nepal Oil Corporation (NOC) increased the price of domestic aviation fuel by Rs 20 per litre, prompting the Civil Aviation Authority of Nepal (CAAN) to revise fuel surcharges on domestic flights and helicopter services. The revised fuel surcharge came into effect on Tuesday, automatically increasing ticket prices on domestic air routes as fuel costs are directly incorporated into airfare calculations.
Fuel Price Hike Drives Increase in Airfares
The latest adjustment follows a revision in fuel procurement prices from the Indian Oil Corporation (IOC), which notified the Nepal Oil Corporation of higher supply rates on July 31, 2026. According to NOC, the procurement cost of aviation fuel increased by Rs 19.06 per litre, leading to the latest domestic price revision. With the increase, the retail price of domestic aviation fuel has reached Rs 249 per litre. In addition, the price of international aviation turbine fuel has risen by US$131 per kilolitre.
The increase comes just over a month after NOC had reduced domestic aviation fuel prices by Rs 40 per litre on June 30, a move that had temporarily lowered domestic airfares. The latest hike has effectively reversed those savings, resulting in higher travel costs for passengers.
Kathmandu–Dhangadhi Sees Highest Fare Increase
Among domestic routes, the Kathmandu–Dhangadhi sector has experienced the largest fare increase, with ticket prices rising by Rs 880, according to the Airlines Operators Association of Nepal. The route, one of the country’s longest domestic sectors, has been the most affected by the revised fuel surcharge.
Other major fare increases include:
- Mountain flights: Up by Rs 685
- Kathmandu–Nepalgunj: Up by Rs 655
- Kathmandu–Bhadrapur: Up by Rs 605
Passengers traveling on other domestic routes will also see varying increases depending on flight distance and fuel consumption.
Helicopter Charter Rates Also Increase
The fuel price adjustment has also pushed up helicopter charter rates across Nepal. The standard rescue block-time charge for helicopter operations within the Kathmandu Valley has increased to Rs 128,000, inclusive of VAT.
Tourist charter and remote-area helicopter services have recorded even sharper increases. Charter flights between Kathmandu and Pokhara now cost up to Rs 382,000, while flights to remote districts such as Darchula can reach approximately Rs 1.65 million, reflecting the higher operating costs.
Part of Broader Fuel Price Revision
The increase in aviation fuel prices is part of a broader revision of petroleum product prices announced by the Nepal Oil Corporation.
Alongside aviation fuel, NOC has increased the price of:
- Petrol: Rs 3 per litre
- Diesel: Rs 5 per litre
- Kerosene: Rs 5 per litre
The revised fuel prices came into effect from 12:01 a.m. on August 3. Although aviation fuel prices in Pokhara and Bhairahawa have been maintained at break-even levels, fuel supplied in Kathmandu has become more expensive due to higher procurement costs.
Higher Travel Costs for Passengers
The latest revision is expected to increase travel expenses for domestic passengers, particularly those flying to western and far-eastern destinations, as well as tourists relying on helicopter services for trekking, sightseeing, and rescue operations.
According to NOC, the price adjustments were necessary due to rising import costs from India. The state-owned fuel supplier said it continues to face financial pressure on several petroleum products despite periodic price revisions, making fuel price adjustments necessary to reflect international procurement costs.
