Nepal Government Implements Significant Hike in Public Transport Fares

Kathmandu. The government has adjusted public transport fares. The Department of Transport Management has announced that the new fares for passenger and freight vehicles will come into effect starting today.

The department had submitted the necessary files for fare adjustment to the ministry on 2082 Chaitra 22. Following the approval of the proposal by the Minister for Physical Infrastructure and Transport, Sunil Lamsal, at the ministerial level today, the new fare rates have been implemented.

Passenger transport fares have been increased by 16.71 percent. Similarly, there has been a significant increase in freight transport fares. Fares for freight vehicles operating in hilly regions have been increased by 21.68 percent, while those in the Terai region have seen a 15.75 percent hike.

According to Department Director Shrikant Yadav, the new rates are effective from today. Director Yadav stated that fare adjustment is a regular process and this time, the rates were reviewed based on 13 different indicators. 'The calculations for the fare adjustment have been completed and moved forward,' Yadav said, 'The increased fare rates will be applicable in the capital starting today.'

Director Yadav noted that while fuel prices were previously the primary basis, this time the proposal was prepared by analyzing 13 indicators, including vehicle spare parts, lubricants, and labor costs.

This is a long-standing issue that had been stalled for some time. Now, new rates have been set after a detailed analysis of all aspects. Yadav stated, 'Fuel accounts for 35 percent of the fare adjustment, while the remaining 65 percent consists of 13 other non-fuel indicators. The new rates were determined after a detailed calculation of all these factors.'

The department had formed a committee on 2082 Shrawan 1 to adjust vehicle prices. This decision was based on the report submitted by the committee after studying the market regarding tires, lubricants, spare parts, and labor wages.

Following the rise in petroleum prices due to the conflict in West Asia, transport operators had pressured for a fare hike. The Nepal Oil Corporation has also increased petroleum prices three times since the conflict began. Currently, the price of petrol is 202 rupees per liter and diesel is 182 rupees per liter.

In 2065, an agreement was reached for automatic fare adjustment whenever fuel prices increased or decreased by 5 percent or more, but it could not be implemented.

Transport operators had threatened to halt services, claiming that fare rates could not be adjusted despite repeated fuel price hikes since 2078. Previously, fare rates were adjusted on 2081 Poush 22 based on fuel price increases.