Govt hikes public transport fares by 3.5percent

Kathmandu, May 18:

The government has decided to increase the fares of long-distance vehicles by 3.5 percent.

The fares have been increased due to the spike of crude oil prices in the international market. The Indian Oil Corporation (IOC), the sole supplier of petroleum products to Nepal, sent a revised price list for fuel import to the Nepal Oil Corporation (NOC) on Monday, resulting in an increase of Rs 15 per liter in diesel prices, compared to last month.

As a result, the fares of cargo vehicles operating in the hilly region have increased by 4.6 percent whereas the fares of those operating in the Terai region have also increased by 5.1 percent

Any increase or decrease in the fuel prices by five percent or more in the scientific fare adjustment system automatically leads to a change in the fares of public vehicles. The previous time the fares were adjusted was on March 31 when the price of diesel stood at Rs 138. At present, the price of diesel is Rs 153 per liter in the domestic market.