Nepal's Transport Department Prepares to Cut Electric Vehicle Bus Fares by Up to 10%

Kathmandu. The Department of Transport Management is preparing to reduce the fare for electric vehicles (EVs) by up to 10 percent. The department has stated that internal discussions on this matter have begun.

Discussions are underway to set a new rate because, while fare rates have been set for diesel buses, the fare rate for EV buses has not been clearly established. The department states that the proposal to reduce the fare is based on the lower operating costs of EV buses compared to diesel buses.

According to the Director General of the department, Rajiv Pokharel, necessary studies are being conducted to make the EV bus fare structure systematic and consumer-friendly. "Fare rates have been set for diesel buses, but there is no clear provision for EV buses. Therefore, we are discussing reducing the fare by up to 10 percent after studying the cost and operational aspects," he said.

The department announced that it will consult with stakeholders and make an appropriate decision soon. It is expected that after the decision is implemented, passengers will be able to travel at cheaper fares.

The Chairman of the Nepal Transport Entrepreneurs National Federation, Vijay Bahadur Swar, stated that they agree that the fare rate should be determined on a scientific basis. "In the case of EV vehicles, the battery is expensive, so the cost aspect must also be considered; diesel is expensive. But the battery is also expensive in EVs. We agree that the fare rate will fluctuate slightly based on a scientific evaluation of these aspects," he said. He emphasized that a decision should only be made after discussing the adjustment of the fare rate according to a scientific method that incorporates operating costs, maintenance, fuel, and technology-related costs.