The government is planning to revise public transportation fare upward.

Transporters have been demanding to hike fare by at least 15 per cent but the Department of Transport Management seems to be looking at around 10 per cent hike.

Earlier, the government had raised transportation fare by nine percent last March.

Everytime Nepal Oil Corporation jacks up the fuel price, the transporters pressurise the government to hike transportation fare too claiming that prices of petroleum and non-petroleum products have increased in last couple of years.

According to Department of Transport Management, it has been studying fuel and non-fuel costs and their impact.

The department will fix the new fare according to the hiked fuel price, and increased price of non-fuel component. “The fuel covers some 35 per cent of the cost,” according to the transporters.

Scientific Fare Determination Mechanism – started in 2009 – states that the transportation fare will  be revised once a year depending upon fuel and non-fuel component. The transportation fare will be revised, if fuel price increases by five per cent, according to the mechanism that has made a formula for the fare hike. “New fare is determined on the basis of 35 per cent contribution from fuel and 65 per cent contribution from non-fuel factors.”

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