While the price of diesel fell down by 21 percent since mid-March last year to reach Rs 84 per liter on Monday, the government said it doesn’t plans to review the fare of public transportation immediately.
Citing a rule as per the ‘Scientific Fare Adjustment System’, Department of Transportation Management (DOTM) officials said the department would not reduce the fare of public transportation.
According to the rule, the transportation fare is revised if the diesel price goes up or down by Rs 5 per liter.
“The price reduction decision of Sunday would not make any changes in the transportation fare. The price should fluctuate by Rs 5 per liter to make any revision,” Madhusudhan Burlakoti, Director General of DOTM, told Myrepublica.
The government has last revised the transportation fare on February 9.
The price of the petroleum products is falling down continuously since March 14 last year. The price of diesel which was Rs 109 per liter has fallen down to Rs 84 on Monday after Nepal Oil Corporation slashed down Rs 2.5 per liter further on Sunday.
According to the ‘Scientific Fare Adjustment System’, the fare of public transportations is revised in two ways.
If the price of the diesel goes down or up by Rs 5 per liter, the fare of the transportation is revised accordingly.
Similarly, the government revises the fare annually following the formula of ‘cost analysis chart’.
“There are 14 indicators including cost of insurance, salary/allowance of driver/staff, garage and space, maintenance, battery, depreciation, petroleum products and profit of operators, among other indicators. The changes of the cost for these indicators are collected through market survey. We put these costs in the formula based on their weight of these indicators and prices are revised accordingly,” Burlakoti explained the process.
He said that they will soon start market survey to collect the price of these indicators.
“We will soon conduct the survey and make decision on the fare revision based on the result of the formula,” he said. “However, just the price went down by Rs 2.5 do not drives down the fare,” he added.
Sources at the DoTM, however, alarmed that the fare of the transportation might go soon.
“Opposite to petroleum products price’, other costs in the Cost Analysis Chart have gone up. The fare may go up after the market survey is done and fare is calculated through the scientific formula,” a leader of the transportation operators told Myrepublica, seeking anonymity.