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Home Prime News

Erstwhile government increases public transport fares by 28%

CEO Tab by CEO Tab
July 15, 2021
in Prime News
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The government has increased fares for long-distance public transport. The government has increased fares by 20 to 28 percent based on the rise in prices of petroleum products and vehicle parts.

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According to the report prepared by the task force formed by the Department of Transport Management, the fare of public transport to inter-province has been fixed by the then Minister of Physical Infrastructure and Transport Basanta Nemwang.

According to him, it was decided to implement the increased fare from July 12. The government has increased fares for passenger vehicles by 28 percent. Similarly, the fare of freight vehicles operating on hilly roads has been increased by 20 percent and the fare of freight vehicles operating on Terai roads has been increased by 26 percent.

According to the scientific fare adjustment rules made by the government in 2065 BS, the fare has been fixed at 35 percent of the price of fuel and 65 percent of other expenses including spare parts.

After 2069 BS, other indicators of fare determination have been kept the same since 2072 BS and the fare has been adjusted on the basis of fuel only. Even in 2075 BS, the overall rent was increased by 10 percent without studying the market. As the market study could not be done for a long time, the scientific fare could not be implemented.

Adjustment of public transport vehicle fares based on the price increase in key indicators including transport, labor wages, fuel, tires, interest, operating expenses, hashtags and operating profit identified on the basis of market study and consultation with stakeholders conducted by the department on investment and expenditure related to public transport operation. The department has issued a notice.

In the statement provided by the Department, the work done by the Government of Nepal and in accordance with subsection (1) of section 96 of the Vehicle and Transport Management Act 2049 BS, the right given by clause (d) of section 153 of the same Act shall be operated in two or more provinces. It has been stated that only the fare of public transport vehicles operating on the route has been adjusted.

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