Airlines Operators Association of Nepal (AOAN) has slashed fuel surcharge by a minimum of Rs115 to a maximum of Rs384, effective from Monday.

The association’s decisions came after Nepal Oil Corporation reduced the air turbine fuel (ATF) price by Rs10 per litre effective last Friday.

The government allows domestic carriers to increase or decrease the surcharge only if the jet fuel price increases or decreases by at least Rs4 per litre.

AOAN Spokesperson Ghanashyam Acharya said the reduction in the fuel surcharge is a relief for air travellers and this will lead to lower airfares.

However, things could be different if the government hikes airfares.

The Civil Aviation Authority of Nepal (Caan) has recommended a 19-39 percent hike in airfares depending on the travel distance and routes.

Caan’s airfare revision committee has proposed jacking up ticket prices by 39 percent for short routes and by as much as 19 percent for trunk routes.

It has proposed a flat 33 percent increase for the remote sector.

The last time domestic airfares were last reviewed in February 2011.