Inter-Provincial Public Transport Fare Reduced by Two Percent
The Department of Transport Management has reduced inter-provincial public transport fares by two percent following a decline in fuel prices. According to the Department, the reduced new fare rates have come into effect from Thursday. This adjustment will apply to passenger vehicles as well as freight vehicles operating in the hills and Tarai.
According to the Department, the average market price of diesel has decreased from Rs. 235.83 per liter to Rs. 192.83 per liter at present. Although the price of diesel has dropped by Rs. 43 per liter, or about 18.23 percent, the fare rate has been reduced by only two percent.
Why Was the Fare Reduced by Only Two Percent?
Under the scientific fare adjustment system, there is a provision for automatic fare adjustment when fuel prices increase or decrease by five percent or more. However, the Department has clarified why the fare was reduced by only two percent despite fuel prices falling by up to 18 percent.
According to the Department, on Baisakh 16, 2083, fares should have increased by 9.8 percent to 14.3 percent under the scientific automatic pricing system. However, considering the circumstances at that time, the fare was increased by only five percent. The Department stated that because the fare that should have been increased earlier was not fully raised, the fare has now been reduced by only two percent despite the sharp decline in fuel prices.
Dissatisfaction Among Transport Entrepreneurs
Transport entrepreneurs have expressed dissatisfaction over the fare rate reduced by the government. Tek Nath Gautam, General Secretary of the Federation of Nepalese National Transport Entrepreneurs, said the government’s decision is contrary to scientific standards.
“According to the automatic pricing system, the fare rate should currently have been adjusted by only about one percent, but the government has forcibly reduced it by two percent. This is contrary to the scientific standard implemented by the Department and is not in accordance with the procedure,” General Secretary Gautam said.
Basis of the Scientific Fare Adjustment System
Under the scientific fare rate, or automatic price adjustment system, implemented since 2065 BS, fares are adjusted when fuel prices increase or decrease by five percent at once. In this system, fare determination is based on a 35 percent share of fuel price and the remaining 65 percent share of 13 vehicle-related indicators. These indicators include vehicle parts, lubricants, market inflation, and labor costs, among others.
