Kathmandu: Nepal Airlines has emerged as the top domestic airline in aviation fuel consumption for international flights in the last fiscal year, surpassing all other domestic and international operators flying from Nepal.
According to data from the aviation fuel depot at Sinamangal operated by Nepal Oil Corporation (NOC), Nepal Airlines purchased and consumed 20.2 million litres of aviation turbine fuel (ATF) worth Rs 2.68 billion for its international operations in the fiscal year 2024/25. This figure excludes its domestic flight operations, which involve separate fuel purchases.
Nepal Airlines, which is fully owned by the government of Nepal, dethroned Himalayan Airlines, the top fuel consumer in the previous fiscal year.
Himalayan Airlines, a joint venture between Nepali and Chinese investors, consumed 19.73 million litres of ATF worth Rs 2.62 billion during the same period. The airline operates international routes to destinations including Lhasa, Dubai, Kuwait, Dammam, Doha, Abu Dhabi, and Malaysia.
Qatar Airways came in third, purchasing 13.69 million litres of fuel valued at Rs 1.81 billion, followed by Air Arabia with 12.7 million litres at a cost of Rs 1.68 billion.
Fly Dubai bought 10.9 million litres for Rs 1.44 billion, and Turkish Airlines acquired 10.3 million litres of fuel costing Rs 1.37 billion.
Other notable buyers of aviation fuel included Jazeera Airways (4.85 million litres, Rs 643 million), Indian Airlines (3.46 million litres, Rs 459 million), IndiGo (2.75 million litres, Rs 366 million), and Thai Airways (2.32 million litres, Rs 310 million).
In total, 21 international airlines purchased aviation fuel through eight different agent companies. Collectively, these airlines procured 42.07 million litres of ATF worth Rs 5.56 billion.
Among agents, Aviation Services Management (FZE) led the pack, selling 26.1 million litres of ATF worth Rs 3.44 billion. This agent serviced airlines such as China Eastern, Air China, Cathay Pacific, Malindo Air, Ethiopian Airlines (UN), Thai Lion, Salam Air, Malaysian Airlines, Singapore Airlines, Batik Air, and Vistara.
Associated Energy Group sold 6 million litres of ATF worth Rs 804 million to carriers including Kuwait Airways, Tibet Airlines, UniTop Airways, SriLankan Airlines, Royal Thai Air Force, and Sichuan Airlines.
AML Global, another agent, sold 5 million litres worth Rs 666 million, primarily to the US Department of Defense and Korean Airlines. World Fuel Services sold 0.32 million litres worth Rs 42.3 million, while Uniqueen International (UIPCC) sold 4.16 million litres valued at Rs 549 million, primarily to China Southern.
Notably, the Indian Embassy in Kathmandu purchased 3.25 million litres of aviation fuel worth only Rs 455,000, possibly due to bulk governmental pricing arrangements. Meanwhile, fuel worth Rs 11.3 million was sold for VVIP flights.
On the domestic front, Buddha Air led in ATF purchases, buying 13.57 million litres valued at Rs 1.73 billion. It was followed by Shree Airlines with 8.07 million litres worth Rs 1.03 billion and Yeti Airlines with 4.95 million litres for Rs 631 million. Other key domestic operators included Kailash Helicopter (0.42 million litres), Sita Air (0.28 million litres), Simrik Air (0.22 million litres), Manang Air (0.24 million litres), Heli Everest (0.36 million litres), Air Dynasty (0.34 million litres), Altitude Air (0.31 million litres), Summit Air (0.25 million litres), and Nepal Airlines’ domestic division (0.22 million litres).
Overall, the Sinamangal aviation fuel depot—the largest of its kind in Nepal—sold 174.2 million litres of aviation fuel in the last fiscal year, generating Rs 22.93 billion in sales. From this, the government collected Rs 3.44 billion in taxes and Rs 447 million in VAT.
Compared to the previous fiscal year, when the depot sold 165.9 million litres worth NPR 22.82 billion, this year’s volume marked a significant increase. However, revenue collections were slightly higher in the previous year, with Rs 3.4 billion in taxes and Rs 442 million in VAT.
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