Kathmandu: Escalating tensions in West Asia have deepened the global fuel crisis, pushing petroleum prices upward every two weeks in the international market. In Nepal, fuel prices are adjusted automatically by the Nepal Oil Corporation based on rates provided by the Indian Oil Corporation, meaning consumers are directly affected by these fluctuations.
At present, aviation fuel in Kathmandu has surged sharply, with international rates reaching US$ 1,785 per kilolitre, while domestic prices stand at Rs 262 per litre. Just weeks earlier, before mid-March, international aviation fuel cost US$ 966 per kiloliter, showing a dramatic increase. Domestic fuel prices have also more than doubled over the same period, rising from Rs 124 per litre to the current level.
This spike in aviation fuel costs is placing significant pressure on airlines, not only due to regular operations but also because of fuel burned during holding patterns. Flights arriving in Kathmandu are frequently forced to circle in the air for 20 to 30 minutes due to air traffic congestion, adding to operational strain.
According to Nepal Airlines spokesperson Devendra Pun, the Airbus A320-200 aircraft, equipped with IAE V-2500 engines, consumes between 1,200 and 1,500 kilograms of fuel per hour while holding at altitudes of 12,000 to 15,000 feet. With fuel costing around US$ 1.78 per kilogram, and the exchange rate at Rs 149.70 per dollar, airlines spend roughly Rs 267 per kilogram of fuel. A 30-minute holding period for an international flight burns about 750 kilograms of fuel, adding an extra burden of nearly Rs 200,000 each time.
Wide-body aircraft consume even more. Nepal Airlines’ Airbus A330-200, powered by Trent engines, typically holds between 10,000 and 16,000 feet. On average, it burns around 6,000 kilograms of fuel per hour, meaning even a 30-minute delay can result in additional fuel costs of around Rs 800,000.
Domestic airlines are also feeling the impact. The ATR-72 aircraft, widely used for internal flights, consumes about 8 liters of fuel per minute, both in the air and on the ground. Based on current prices, even a single minute of holding costs Rs 2,096. With most flights delayed by 20 to 30 minutes, airlines face additional expenses ranging from Rs 41,920 to Rs 62,880 per flight.
Aircraft operated by Shree Airlines consume even more fuel, about 1.4 times higher than the ATR-72 used by Buddha Air and Yeti Airlines. Its Dash-8 aircraft, with a 78-seat capacity, has higher fuel consumption compared to the 72-seat ATR models.
Industry leaders say reducing fuel consumption and holding times is not something airlines can achieve on their own. Buddha Air Executive Chairman Birendra Bahadur Basnet points to heavy traffic at Kathmandu airport and weak government management as the main causes forcing aircraft into holding patterns, ultimately driving up operational costs across the aviation sector.
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