Money

Government cuts transport fares

- Post Report, Kathmandu

Sep 10, 2015-

The government on Wednesday reduced public transport fares in line with the fall in prices.

The minimum fare on city routes has been cut by Re1 to Rs13, while cargo rates have been slashed by 3.24 percent for Tarai routes and 3.10 percent for Kathmandu/Pokhara-Narayanghat routes. The taxi fare has been cut by 1.63 percent. However, the new rates would come into effect only after the approval of the Transport Ministry and publication  in the Nepal Gazette.

The government had formed a four-member committee under the coordination of Chandra Man Shrestha, director general of the Department of Transport Management, including transport entrepreneurs, to adjust the fares. “We will send the new fare list at the ministry for its approval on Thursday,” said Sarad Adhikari, director at the department. “After the ministry approves the new rates, it will take at least two days to come into effect.”

Although the government has adopted scientific fare revision system, this time it was done on the basis of reduced petroleum prices.

“As the new fares have not incorporated other basic indicators, it would be reviewed again after conducting a market survey immediately after Dashain, Tihar and Chhat festivals,” the agreement draft reached between the transport entrepreneurs and the department read.

Nepal Oil Corporation (NOC) has cut the price of diesel by Rs5.50 per litre on three different occasions since April 2. The latest price cut was made on September 6 when NOC reduced Rs1 on a litre of diesel. As per the understanding, transport fares are reduced when fuel prices drop by a minimum Rs5 on a litre. The diesel currently stands at Rs81 per litre.

Published: 10-09-2015 08:24

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