Govt to cut transport fare by a rupee on all local routes

Fares on long routes to be slashed by 2.22%

KATHMANDU, Sept 8: The government is preparing to reduce public transport fares in local routes in the Kathmandu Valley and other cities by Re 1.

Chandra Man Shrestha, director general of the Department of Transport Management (DoTM), told Republica that the department is mulling reducing public transport fares on longer routes by 2.22 percent.

SUJAN DHUNGANA
KATHMANDU, Sept 7
The government is preparing to reduce public transport fares in local routes in the Kathmandu Valley and other cities by Re 1.
Chandra Man Shrestha, director general of the Department of Transport Management (DoTM), told Republica that the department is mulling reducing public transport fares on longer routes by 2.22 percent.
However, Shrestha said transport fare on all local routes in the Valley and city areas will be reduced by a rupee as reduction in fare by 2.22 percent in existing transport fares in those routes would make differences only in terms of paisa.
“We have forwarded our proposal to stakeholders to reduce public transport fares by 2.22 percent on long routes and by Re 1 in local routes,” Shrestha said, adding: “The 2.22 percent reduction in transport fare, however, will not be applicable in local routes as this reduction makes a difference only in transport fares on long routes.”
DoTM on Monday held a meeting among stakeholders at the department’s offices to discuss fare reductions. “Stakeholders, including transport entrepreneurs, seemed optimistic toward the proposal,” Shrestha said, adding: “The proposal will be forwarded to the Ministry of Physical Infrastructure and Transport (MoPIT) in a couple of days, after taking in final input from the stakeholders.”
If the transport fare is adjusted accordingly, passengers in local routes in the Valley and other cities will have to pay a minimum of Rs 12 for up to four kilometers of travel and a maximum of Rs 24 for 16 to 19 kilometers.
Earlier, the government had been facing public criticism for not reducing public transport fares despite continuous drops in the price of diesel.
The government adjusts transport fares on the basis of the Scientific Fare Determination Mechanism which states that transport fares should be revised after change in fuel prices by Rs 5 a liter.
However, the government was reluctant to reduce transport fare citing that fuel prices, especially that of diesel, has not come down by Rs 5 per liter since the previous adjustment in fares. The government last adjusted transport fares in February.
In the mean time, the chief secretary-led Central Monitoring Committee (CMC) last week directed MoPIT to reduce transport fares in line with the falling fuel prices and to introduce a provision to revise public transport fares in line with adjustments made in price of petroleum products by Nepal Oil Corporation (NOC).
NOC reduced diesel prices by Re 1 per liter on Sunday to Rs 81. So now the difference in diesel prices has crossed Rs 5 per liter since the last adjustment in fares.

However, Shrestha said transport fare on all local routes in the Valley and city areas will be reduced by a rupee as reduction in fare by 2.22 percent in existing transport fares in those routes would make differences only in terms of paisa.

"We have forwarded our proposal to stakeholders to reduce public transport fares by 2.22 percent on long routes and by Re 1 in local routes," Shrestha said, adding: "The 2.22 percent reduction in transport fare, however, will not be applicable in local routes as this reduction makes a difference only in transport fares on long routes."

DoTM on Monday held a meeting among stakeholders at the department's offices to discuss fare reductions. "Stakeholders, including transport entrepreneurs, seemed optimistic toward the proposal," Shrestha said, adding: "The proposal will be forwarded to the Ministry of Physical Infrastructure and Transport (MoPIT) in a couple of days, after taking in final input from the stakeholders."

If the transport fare is adjusted accordingly, passengers in local routes in the Valley and other cities will have to pay a minimum of Rs 12 for up to four kilometers of travel and a maximum of Rs 24 for 16 to 19 kilometers.

Earlier, the government had been facing public criticism for not reducing public transport fares despite continuous drops in the price of diesel.

The government adjusts transport fares on the basis of the Scientific Fare Determination Mechanism which states that transport fares should be revised after change in fuel prices by Rs 5 a liter.

However, the government was reluctant to reduce transport fare citing that fuel prices, especially that of diesel, has not come down by Rs 5 per liter since the previous adjustment in fares. The government last adjusted transport fares in February.

In the mean time, the chief secretary-led Central Monitoring Committee (CMC) last week directed MoPIT to reduce transport fares in line with the falling fuel prices and to introduce a provision to revise public transport fares in line with adjustments made in price of petroleum products by Nepal Oil Corporation (NOC).

NOC reduced diesel prices by Re 1 per liter on Sunday to Rs 81. So now the difference in diesel prices has crossed Rs 5 per liter since the last adjustment in fares.