Passenger fares to be hiked after talks with transporters

KATHMANDU, JUL 04 -

The Ministry of Physical Planning, Works and Transport Management has said that the proposed new transport fares would be endorsed only after consultation with transport entrepreneurs. The ministry’s statement follows moves by the Department of Transport Management to hike passenger fares by 3.75 percent to keep up with rising gasoline prices.

“We are trying to be clear on the need to jack up fares and the way they are calculated,” said Tulasi Prasad Sitaula, secretary at the ministry. He added that since the transport sector was directly related to the general public, the ministry was taking the fare issue seriously before making any decision.

The department has sought the ministry’s go-ahead to hike passenger fares by 3.75 percent and freight charges by 4-4.50 percent. The department said that the proposed increases were based on the scientific fare fixing system adopted by the government.

According to Sitaula, the ministry and the department would meet with the National Federation of Nepalese Transport Entrepreneurs and the Federation of Truck Tanker and Transport Entrepreneurs soon. The issues to be discussed include the impact of frequent fuel price hikes, the reason behind the failure to implement a ticket system for commuters and the trend of rounding off the fares after they have been increased.

Sitaula said that increasing the fare to a round figure has become a serious matter. “Even though it is normal for fares to go up whenever fuel prices rise, we also want to discuss a permanent way to avoid frequent adjustments,” he added. Giving an example of fares being rounded off, ministry officials said that when the department increased the rates the last time on March 20 from Rs 13 to Rs 13.59, vehicle owners were charging passengers Rs 14.

The department has been using a scientific fare fixing system to adjust ticket prices for the last four years. The system gives a weightage of 35 percent to fuel and 65 percent to non-fuel factors. Non-fuel components include bank interest on loans, cost of spare parts, staff salary and administrative and maintenance costs.

 

Source: http://www.ekantipur.com/2012/07/04/business/passenger-fares-to-be-hiked-after-talks-with-transporters/356584/