Nepal Transport Operators Demand Fare Adjustment Amid Soaring Fuel Prices

Kathmandu. Citing a crisis in the transport sector due to uncontrolled fuel price hikes, transport operators have demanded a fresh fare adjustment or a rollback of the price increases.

 The demand comes less than a week after the government increased fares following a rise in diesel prices, only to impose another massive hike in fuel costs.

Saroj Sitaula, Senior Vice President of the Federation of Nepalese National Transport Entrepreneurs, stated that the recent cumulative increase of 55 rupees per liter in diesel has made the transport business unsustainable. He claimed that the recent fare adjustment is insufficient compared to the fuel price hike and fails to cover operational costs.

According to Vice President Sitaula, long-distance vehicles are facing a significant financial burden. 'A single vehicle traveling to Kakarbhitta consumes about 350 liters of diesel. The 55-rupee increase alone adds an extra cost of 19,250 rupees per trip,' Sitaula said. 'This situation is pushing operators to the brink of quitting the business.'

Operators have demanded the strict implementation of a scientific, automated pricing system where fares automatically decrease or increase in line with fuel prices to end recurring disputes. 'When prices rise at midnight, it is implemented within a minute, but it takes months for fare adjustments, which hurts the operators,' Sitaula added.

In this abnormal situation, operators have demanded that the government immediately waive various taxes levied on fuel and adjust prices according to the international market. They argue that fuel being cheaper in India compared to Nepal increases the risk of smuggling and puts domestic operators at a disadvantage.

Having been hit by price hikes less than a week after the last fare adjustment, operators have announced plans to send a formal letter to the Department of Transport Management. They have warned that if the government does not review fuel prices or adjust fares scientifically, they will have no choice but to park their vehicles in garages.

On Chaitra 25, the central government adjusted public transport fares. The Department of Transport Management, considering 13 indicators, increased passenger transport fares by 16.71 percent, cargo vehicle fares in hilly regions by 21.68 percent, and cargo vehicle fares in the Terai region by 15.75 percent. Since then, fuel prices have been increased twice. The Nepal Oil Corporation issued a press release on Wednesday announcing a new price adjustment effective from 12 AM on Baisakh 3 (Thursday). 

According to the new price list, the price of diesel and kerosene has been increased by 30 rupees per liter. The price of petrol remains unchanged. Previously, on Chaitra 26, diesel prices had increased by 25 rupees and petrol by 17 rupees.