Transporters demand 15 per cent fare hike
Transport entrepreneurs today demanded hike in public transportation fare by at least 15 per cent due to increased fuel price.
The recent petroleum price hike has increased financial burden on transporters, they claimed, asking the government to let them revise transportation fare within a week.
"Prices of spare parts have also increased over the past few years, but transportation fare has remained the same," general secretary of Federation of Nepalese National Transport Entrepreneurs Dolnath Khanal said, adding that the price hike in petroleum products further worsened the situation.
They have asked hike based on the inflation rate and the price hike in petroleum products since fuel price contributes 35 per cent and non-fuel factors contribute 65 per cent. The government jacked up price of petrol by Rs 10 per liter and diesel by Rs 6 per liter on Friday.
The Department of Transport Management is responsible for fixing transportation fares. But it is waiting the government decision, either it will roll back the fuel price or not bowing to the protest.
According to the Scientific Fare Determination Mechanism, transportation fare will be revised once a year based on fuel and non-fuel factors including inflation rate, bank interest rates, and prices of accessories and spare parts.
However, the government had last March revised transportation fare by nine per cent. Generally, transportation fare is revised, when fuel prices increased by more than five percent.