The Department of Transport Management on Monday reduced the fares for public vehicles and cargo carriers plying on inter-province routes following the decrease in the price of diesel.

The rates were adjusted according to the ‘auto pricing mechanism’ and would come into effect from Monday, the department said in a notice.

Under the system, the government can revise fares up and down whenever the prices of petroleum products fluctuate by more than 5 percent.

The fare on passenger vehicles has been slashed by 2.13 percent.

The fare of cargo carriers plying on hilly roads has been reduced by 2.78 percent. The fare of cargo carriers operating in the Tarai area has been slashed by 3.09 percent.

“The revised fares are applicable to the vehicles travelling through two or more provinces on the national-level routes,” the notice reads.

The department said the diesel price has come down by Rs10.17 on average from the last time the fares were adjusted on May 16.

The Nepal Oil Corporation on Sunday slashed the prices of petroleum products. With the reduction of Rs4 per litre, diesel now costs Rs 146 per litre in the Capital.