The decision was made after hours of discussion between government officials and transport entrepreneurs on Tuesday. [break]
Despite immense pressure from the general public to bring down the fares on the basis of declining petroleum price, price cut was much delayed.
According to Dol Nath Khanal, general secretary of Nepal Transport Entrepreneurs´ National Federation (NTENF), the fares have been set at Rs 1.60 per km for high hill areas, Rs 1.33 per km for hilly areas and Rs 1.18 to Rs 1.25 per km for Tarai region.
Deluxe coaches, however, will be allowed to collect 20 percent more than normal fares.
Likewise, fares for Kathmandu Valley have also been fixed according to the distance of the routes. As per the new revision, passengers inside the Ring Road in Kathmandu will have to pay Rs 9 for up to 3 km, Rs 10 for up to 4 km , Rs 11 for up to 6 km, Rs 12 for up to 9 km, Rs 14 for up to 15 km, Rs 16 for up to 20 km and Rs 18 for up to 25 km.
"We will inform our members about the new fares first and immediately implement the government decision," Khanal told myrepublica.com.
The government has introduced, for the first time, the scientific system for fixing the fares that incorporates the contribution of different components including the fuel price while determining the cost of running vehicles.
Institute of Engineering (IoE) was tasked with making a recommendation to the government for fare slash by evaluating the technical components that raise the transport cost. A recommendation panel of IoE had submitted the report on January 10, 2009, suggesting the government to reduce fare by Rs 1.20 per km. The government had fixed the fare earlier at the rate of an average Rs 1.42 per km.
Despite huge drop in petroleum products in domestic market over the past few months, commuters had been paying exorbitant fares due to lack of swift decision from the government on fare revision.
Reacting to dipping international prices of petroleum products, Nepal Oil Corporation - state-owned oil monopolist- has dropped prices of petrol and diesel from Rs 100 and Rs 80 per liter to Rs 77 and Rs 55 per liter, respectively, in the past four months.
However, transport entrepreneurs who have track record of hiking fare immediately after the rise of petroleum price, are collecting old price despite the government´s decision to reduce the fares by 13 percent in two phases--6 percent and 7 percent- two months ago. They had been demanding that the government adopt scientific adjustment system while setting the fares.
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