Transport entrepreneurs demand 15pc fare hike
KATHMANDU, JAN 19 -
Transport entrepreneurs have demanded a fare hike of 15 percent while the government has been engaged in an annual review of the tariff for public transport. However, the government doesn’t want to go over 10 percent.
The Department of Transport Management has been collecting data of price changes of fuel and non-fuel components that affect the cost of transport. As per a guideline set by the government, the transport fare needs to be reviewed each year based on factors such as inflation, prices of spare parts, lubricants, tires and fuel, staff salary and bank interest rate, among others.
Further discussions have been planned between the department and transport entrepreneurs ’ organisations.
“The cost of vehicles, spare parts, lubricants, tires and insurance premiums besides salaries have gone up,” said Dol Nath Khanal, general secretary of the Federation of Nepalese National Transport Entrepreneurs. “Based on inflation and the growing cost of operating transport services, we have asked the government to increase fares by 15 percent.”
The Federation of Truck Tanker and Transport Entrepreneurs and the Nepal Metre Taxi Entrepreneurs’ Association have also been demanding that the government increase the fares. The scientific fare determination mechanism put in place in 2009 requires the government to review transport fares annually. Fares are computed
on a basis of 35 percent contribution of fuel factors and 65 percent contribution of non-fuel factors. Non-fuel factors include bank interest rates for vehicle loans, price of spare parts and administrative costs and maintenance, among others. Department officials have stated that fares may not be hiked by more than 10 percent this year based on an inflation rate of 10.5 percent, a drop in bank interest rates and constant government tax structure.
“The exact rate will be determined only after acquiring information about fuel and non-fuel factors,” said Chandra Prasad Phuyal, director of the department. He added that since preparations were at an early stage, it would take at least a month before the new tariff can be announced after getting the go-ahead from the Ministry of Physical Planning, Works and Transport Management.
Five months ago, the department had hiked transport fares by 3.75 percent and freight charges by 4.45 percent in the Tarai and by 4.50 percent on the Kathmandu-Pokhara-Narayanghat route. At that time, the fare was jacked up based on an understanding between transporters and the department that allows fares to be revised if fuel prices fluctuate by at least Rs 5 per litre.
Taxi operators have been pressing for a fare hike as taxi fares have not been revised for the last 10 months despite rising fuel costs, according to the department. The department had hiked cab fares in March 2012 when the price of petrol was Rs 116 per litre.
Source: The Kathmandu Post
