Transport Federation Issues Ultimatum to Government Over Fare Hike Amid Fuel Price Surge

The Federation of National Transport Entrepreneurs of Nepal has issued an ultimatum to the government to immediately adjust public transport fares. Citing losses due to the sharp increase in petroleum prices, the federation warned that if fares are not adjusted promptly, they will either unilaterally declare new fares or suspend services altogether.

Saroj Sitoula, acting chairman of the Federation of National Transport Entrepreneurs of Nepal, informed that they met with the Minister for Physical Infrastructure and Transport on Wednesday to draw attention to the issue.

Furthermore, the federation issued a statement demanding a fare adjustment. The statement from the federation reads, 'Since Nepal Oil Corporation increased the price of diesel and petrol by NPR 10 per liter effective from the night of Chaitra 2, the situation has become untenable for operating transport businesses.'

Previously, on Chaitra 2, 2082 BS, the federation had demanded a fare adjustment from the government. The statement mentions that based on this demand, the Department of Transport Management recommended a fare hike to the Ministry of Physical Infrastructure and Transport on Chaitra 5. The department recommended increasing fares for public passenger vehicles by 11.33 percent, freight vehicles in the Terai by 8.81 percent, and freight vehicles in the hills by 14.29 percent, according to the scientific fare adjustment method based on 13 indicators implemented since 2065 BS.

'Despite the department's recommendation, and after repeatedly meeting with the Minister, Secretary, and Joint Secretary of the Ministry, there has been no hearing so far,' the federation stated. 'Businesses are incurring losses of hundreds of thousands of rupees daily while providing service; this situation cannot last much longer.'

The federation warned that if the government does not make a decision immediately, they will be forced to either 'self-declare' fares according to the department's recommendation or cease operations entirely. Complaining that fares have not been adjusted according to the scientific method since 2072 BS, the entrepreneurs urged the government to pay serious attention to the matter.