Transport entrepreneurs had originally demanded 13 percent hike in transport fare, arguing that there has been a huge rise in cost of fuel and non-fuel factors in transportation sector over a year.[break]
As per the scientific price setting mechanism, the government determines fare giving 35 percent weightage to fuel and 65 percent weightage to non-fuel factors. Non-fuel factors include bank interests, spare parts, staff salary, administrative costs and maintenance, among others.
Prem Singh, director of the DoTM, told Republica that the recommendation would be immediately forwarded to the MoLTM for consent.
“We recommended hike in transport fare after holding repeated meetings with transport entrepreneurs and consumer rights groups as per the scientific fare determination mechanism. The new fare will come into effect once it gets MoLTM´s nod,” Singh added.
Dol Nath Khanal, general secretary of Federation of Nepalese National Transport Entrepreneurs (FNNTE), said the meeting decided to recommend fare on transportation of goods at Rs 1.42 per km for a distance of 25 km to 250 km on plains and Rs 1.76 km on gravel roads in hilly districts.
Representatives of Consumers Rights Protection Forum boycotted the meeting on Wednesday, stating that the recommendations to hike transport fares goes against the Supreme Court (SC) verdict and the directive of the Commission for the Investigation of Abuse of Authority (CIAA).
The SC on November 7, 2006 had ordered the government not to go for unscientific hike in transport fare. The CIAA had also issued a directive on December 1, 2010, asking the government not to increase fares without studying the fare fixing mechanism in SAARC countries.
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