Nepal has nearly doubled aviation fuel prices as global energy costs surge during the Iran-United States/Israel conflict, officials said recently, raising fears of a fresh blow to its tourism-dependent economy.
The landlocked Himalayan nation of 30 million relies almost entirely on India for its fossil fuel supplies, leaving it exposed to international price shocks.
“Aviation fuel prices have increased,” said Manoj Kumar Thakur, spokesman for the state-owned Nepal Oil Corporation (NOC).
Jet fuel price has risen by 97.6%, from 127 Nepali rupees (RM3.46) per litre to 251 rupees (RM6.80), NOC said in a statement.
Thakur said while fuel supplies remained stable, the corporation was incurring heavy losses on other petroleum products despite some price hikes a few weeks back.
In March, Nepal began selling half-filled cooking gas cylinders to discourage hoarding and panic buying, and officials are now urging the public to cut back on fuel use.
“We are a landlocked country and we are fully dependent on India for petrol, diesel and LPG. The only way out is reducing consumption,” Thakur said.
The steep jet fuel hike, expected to push up airfares, comes just ahead of the peak tourist season, when hundreds of climbers and trekkers arrive in Nepal.
“Less domestic and foreign tourists will choose air travel, and this will have a direct impact on the country’s tourism industry,” said Pratap Jung Pandey, president of the Airlines Operators Association of Nepal.
More than four million passengers travel on Nepal’s domestic airlines each year, according to the Civil Aviation Authority of Nepal.
The crisis has also stirred concern over the safety of more than 1.7 million Nepalis working in West Asian countries, after one Nepali was killed in a strike in the United Arab Emirates in March.
Surcharge in Taiwan
Meanwhile, Taiwanese airlines will also raise their fuel surcharges on international flights by 157% this week, as the West Asia conflict sends global oil prices soaring.
Surcharges on short-haul flights will increase by US$27.50 (RM110.80) to US$45 (RM181.3), and US$71.50 (RM288.20) to US$117 (RM471.50) for longer flights, the Civil Aviation Administration (CAA) and transportation ministry said recently.
China Airlines and Eva Air confirmed that passengers will be affected by the hikes from April 7.
Ticket prices for domestic routes will increase by an average of around US$3 (RM12.10), CAA director-general Ho Shu-ping said during a parliament session.
“In response to international trends, prices often go up and down, so we need to make appropriate adjustments to reflect that,” Ho said.
The move comes as the war in West Asia, and Iran’s effective closure of the crucial Strait of Hormuz, have sent crude prices skyrocketing.
A barrel of Brent oil, the benchmark reference for energy markets, which had fallen back below US$100 (RM403) last week, surged 7%.
Several Chinese airlines, including national carrier Air China, also plan to raise their fuel surcharges.
Other airlines, including Air France-KLM, Air India, Qantas, and SAS, have raised their fares to reflect the increase in jet fuel prices. – AFP
