Decision to hike transport fares draws flak

KATHMANDU, MAR 07 -

Businessmen and consumer right activists have flayed the government decision to increase public transport and cargo carrier fares. They have also demanded that the government correct the decision with further study and make an effort to end syndicate system plaguing the transport sector.

The government has jacked up the public transport and freight fares which will come into effect from Friday. The Department of Transport Management has hiked the public transport fare by 9 percent and cargo fare by 3.27 percent on Hilly routes and by 16.15 percent on Tarai routes. This was the third increment in transport fares within one year.

The Forum for Protection of Consumer Rights Nepal said that the government had been increasing the fare frequently, putting extra burden on the public. Jyoti Baniya, general secretary of Consumer Forum, called for a system based on which transport fares should be increased only once in a year after considering annual changes in all components related to the transport service.

After the latest revision, a ride up to 4 km in cities will cost Rs 1 to Rs 15 more. Bus fare between Biratnagar and Kathmandu has increased to Rs 1,026, up from Rs 907 last year. Similarly, a bus trip from the Capital to Nepalgunj will now cost Rs 1,008, up from Rs 892, while the fare for Kathmandu-Pokhara trip has been fixed at Rs 420, up from Rs 371 last year.

The department said that the latest hike was based on price changes in fuel and non-fuel components like spare parts, bank interest rate, government tax, lubricants, staff salary, among other. “We don’t want to increase the fares. It is the market that drives for increment,” said Sarad Adhikari, director at the department.

Each fare hike sees the government fix the maximum rate for cargo carriers. Even though the government set the maximum fare, it is not being implemented effectively for the lack of monitoring and evaluation from the government part, according to businessmen. Transporters are charging more than what the government sets practicing illegal syndicate such as odd and even number plates system which has become a part of the price hike in consumer products.

“Despite our objection, syndicate is rife in trucks running on Bhairahawa-Kathmandu and Birjung-Kathmandu routes,” said Pasupati Murarka, vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). He said that the government should either create an environment to operate all cargo carriers each day or effectively monitor the fares.

After the hike, the transport department has set the maximum fare of Rs 21,197 for freight carrier on Birjung-Kathmandu route and Rs 21,651 for Bhairahawa-Kathmandu route. However, Murarka claimed truckers are already charging more than the new revised rates, saying that 16 percent hike on Tarai roads was “not clear”.

In March last year, the government had increased the public transport fare by 4.54 percent. After three months, it was again increased by 3.75 percent. Both the increments were based on the government’s understanding with transport entrepreneurs that fare could be increased every time the fuel price rises by Rs 5 or more. June’s fare adjustment had also increased cargo carrier charge by 4 percent and 4.5 percent on Tarai and Hilly routes respectively.

Source: The Kathmandu Post