The decision was taken in view of pressure from transporters for fare adjustment after the rise in the price of petroleum products and other cost components.[break]
On March 26, the government had raised the fare for diesel-run vehicles by 9.9 percent and taxies by 5 percent.
Kapil Dangol, director general of Department of Transport Management (DoTM), said the fare has been raised on the basis of Scientific Transport Fare Fixation Mechanism, introduced some three years back.
As per the mechanism, weightage of fuel and non-fuel components in total cost should be put at 35 percent and 65 percent respectively.
Though DoTM has suggested a hike the fare for diesel-run vehicles (bus, micro-bus) and petrol-run vehicles (taxi) by 10.7 percent and 10.3 percent respectively, the Ministry of Labor and Transport Management directed to jack up the fare by less than 10 percent only.
“In the Kathmandu valley, fare will be raised by Re 1 where existing fare is less than Rs 15 and by Rs 2 if the existing fare is over Rs 15,” said Basu Regmi, an official at DoTM. Flag-down fare for taxi has not been changed but fare per km has increased by Rs 3 to Rs 30.
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