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The Department of Transport Management (DoTM) has recommended increasing public transport fares by up to 11.33 percent after Nepal Oil Corporation (NOC) raised petroleum prices.

The DoTM has submitted a proposal to the Ministry of Physical Infrastructure and Transport to revise fares based on the “scientific fare adjustment system.”

The process began after fuel prices were increased effective from March 16, with diesel rising by Rs 10 per litre and petrol by Rs 15 per litre.

According to the DoTM, the recommendation is based on 13 indicators introduced in 2008. Under this system, fuel prices carry a 35 percent weight, while other operational costs - such as lubricants, tires, spare parts, and staff expenses - account for 65 percent.

The Federation of Nepalese National Transport Entrepreneurs (FNNTE) said the proposal was forwarded to the ministry on March 19. Transport operators have long complained that fare adjustments based on these indicators have not been fully implemented since 2015.

Citing rising inflation and fuel costs, transport operators have urged the government to immediately implement the revised fares, stating that operating under the current rates is no longer viable.

The new fare structure will only come into effect after approval from the ministry. Current policy allows fare adjustments if fuel prices fluctuate by more than five percent.

Earlier on Wednesday, the FNNTE warned that failure to revise fares promptly could disrupt transport services. In a statement, it said operators are incurring daily losses due to rising operational costs.

The FNNTE noted that despite repeated requests to authorities, including a formal appeal made on January 27, no concrete decision has been taken so far.

Based on the DoTM’s proposal, fares for long-distance passenger vehicles could increase by around 11.33 percent, freight transport in hilly regions by 14.29 percent, and freight vehicles operating in the Tarai by 8.81 percent.

Transport entrepreneurs have expressed dissatisfaction over delays in decision-making, saying repeated meetings with ministry officials have failed to yield results.

They claim that mounting expenses - including fuel, maintenance, and labour - have forced operators to run services at a loss, raising concerns about sustainability.

“If this continues, operators may be forced to halt services or increase fares unilaterally,” the federation warned.

The FNNTE has also indicated that it may launch protests if the government fails to take a timely decision, urging authorities to approve fare adjustments based on scientific grounds to provide relief to the transport sector.