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TIA resumes refuelling service for foreign jets
Fuel price for international airlines has been slashed to $981 per kilolitreSangam Prasain
Tribhuvan International Airport (TIA) on Tuesday resumed refuelling service for foreign carriers after stopping it for four and a half months due to dry tanks resulting from a trade embargo by India. The price of jet fuel sold to them has also been revised to a five-year low, but it is still high compared to other airports in Asia, airline officials said.
Pradip Kumar Yadav, in-charge of the aviation fuel depot at TIA, said that the price of aviation fuel sold to international airlines has been slashed to $981 per kilolitre, down from $1,530.
On September 29, 2015, TIA announced that it would not be able to provide refueling facilities to foreign carriers after its reserves ran dry. Subsequently in October, the state-owned fuel supplier increased the price of jet fuel as it had to be flown in by air following the embargo which triggered a severe fuel crisis.
“As jet fuel imports have returned to normal levels, we have decided to supply fuel to airlines in any amount,” he said. Nepal Oil Corporation (NOC) said it currently has reserves of 3,700 kilolitres of jet fuel and has been importing 300 kilolitres daily. The daily requirement of aviation fuel of international carriers stands at 300 kilolitres. Yadav said that the price had been revised as per the international market rate. Airline officials said that despite the big price cut, jet fuel is still expensive in Nepal. Aviation fuel costs $391.60 per kilolitre in Delhi. In Kolkata, jet fuel costs $436.94 per kilolitre.
“Despite the cut, jet fuel prices are two times higher in Nepal,” said Bharat Kumar Shrestha, chairman of the Airlines Operating Committee (AOC). “However, it’s a positive move of NOC to resume refuelling facilities,” he said, adding that airlines were expecting more price cuts in the future. “NOC has also informed us about another price cut soon.” Since the fuel crisis, eastbound flights have been stopping in Dhaka, Bangladesh or Kolkata, India to refuel on their return trip; and westbound flights have been stopping for fuel in Lucknow. Airline officials said that changing the refueling point results in an extra financial burden of $8,000 to $12,000 per flight.
Most airlines serving TIA have been flying with 30-40 fewer passengers than their full capacity as they need to refuel outside Nepal, which results in additional landing and parking charges.
While China Southern Airlines totally suspended its Nepal service, and it remains closed till today, many airlines had slashed their frequency to Nepal due to the cost factor of flying to Nepal. “Tuesday’s decision has been a huge relief for international airlines. From Wednesday, airlines will resume direct flights,” said Shrestha, adding that airlines that had reduced their Nepal frequency would also start normal operations soon.