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Nepal’s Department of Transport Management (DoTM) has reduced fares for inter-province public transportation by 2 percent, following the recent decline in fuel prices.

The revised fares apply to inter-province passenger vehicles, freight vehicles operating on hill routes, and freight vehicles operating on Terai routes. However, the fare adjustment does not apply to public transport operating within the Kathmandu Valley or to inter-district transport services.

According to the department, the new fare rates will come into effect from Asar 18 (July 2).

Fuel price decline prompts fare revision

The fare reduction comes after a decrease in petroleum prices. Under Nepal’s scientific fare adjustment mechanism, public transport fares are automatically revised whenever fuel prices increase or decrease by 5 percent or more.

Despite fuel prices having fallen by more than 18 percent, the department has decided to reduce fares by only 2 percent across all eligible transport categories.

The revised fare structure includes:

- 2 percent reduction for inter-province passenger transport.

- 2 percent reduction for freight vehicles operating on hill routes.

- 2 percent reduction for freight vehicles operating on Terai routes.

Scientific fare adjustment mechanism

The Department of Transport Management said the adjustment was made in accordance with the government’s scientific fare calculation system, which considers changes in fuel prices alongside other operating costs.

While transport operators had benefited from lower fuel costs in recent weeks, commuters had been awaiting a corresponding reduction in fares.

The latest revision provides modest relief for passengers travelling between provinces and businesses transporting goods across the country. However, commuters using public transportation within the Kathmandu Valley and those travelling on inter-district routes will not see any change in fares under the current decision.

The announcement comes as fuel prices have eased in recent weeks, lowering transportation costs and prompting expectations of broader reductions in logistics and passenger transport expenses across Nepal.