The passenger vehicle fares have been increased by 16.71 percent, while cargo vehicle fares have been raised by 21.68 percent on hilly routes and 15.75 percent in the Terai, in line with the government’s automatic pricing system.

Earlier in the day, the Ministry of Physical Infrastructure and Transport granted in-principle approval to the Department of Transport Management (DoTM) to adjust public transport fares. Following this, the department published the updated list for inter-provincial travel.

The government introduced an automated fare system through a ministerial decision on April 14, 2022. Under this system, the DoTM is authorised to adjust inter-provincial transport fares whenever the price of petroleum products increases or decreases by 5 percent or more. The department said the latest adjustment was made based on an analysis of indicators and changes in fuel prices.

Shrikant Yadav, director of the DoTM, said the department’s decision on the fare adjustment would be made public shortly. “We have already received in-principle approval from the Ministry,” he said. “There will be specific percentages for passenger buses and cargo transport, including separate rates for cargo vehicles operating in the Terai.”

Director Yadav added that while the DoTM oversees vehicles travelling between provinces, provincial governments will use these figures as a benchmark to revise local fares. For public transport operating within the Kathmandu Valley, the Bagmati provincial government will set the new rates.

When asked about the timing of the adjustment, Yadav said the decision was made in line with the automated fare system. “While fuel price changes are a primary factor among the 13 indicators we track, we conduct an annual evaluation of all variables before deciding on an adjustment,” he said.

Saroj Sitaula, senior vice-president of the Federation of Nepalese Transport Entrepreneurs, said that once the department officially publishes the new rates, the revised fares will be implemented across the country through the respective provincial authorities.