Transport Entrepreneurs Demand Fare Adjustment After Fuel Price Hike

The Federation of Nepalese National Transport Entrepreneurs (FNTTE), an umbrella body of transport operators, has demanded an adjustment in public transport fares following the recent increase in fuel prices.

In a press statement issued on Monday, March 16, the federation said its attention had been drawn to the latest hike in petroleum product prices.

The Nepal Oil Corporation (NOC) late Sunday decided to raise the retail price of petroleum products. Petrol prices increased by Rs 15 per litre, while diesel and kerosene rose by Rs 10 per litre, effective from Monday.

According to the NOC, escalating conflict in West Asia and the ongoing Russia-Ukraine war have pushed up crude oil prices in the international market, increasing import costs and leading to the price hike.

The federation said the fuel price increase, made without considering the concerns of transport entrepreneurs and passengers, has directly affected the transport sector.

Despite a provision to adjust fares on federal routes through an automated system, the federation said no fare adjustment has been made since December 2024.

It noted that transport fares have been scientifically adjusted for more than one-and-a-half decades based on 13 vehicle-related indicators. However, the federation complained that the system has not been implemented effectively.

The federation urged the government to promptly revise fares on federal routes through the Department of Transport Management and on provincial routes through the respective provincial ministries, taking into account the recent fuel price hike and the 13 indicators.

It also called on the government to adopt a scientific system to prevent internal leakage within the Nepal Oil Corporation and to manage fuel consumption more efficiently.