The government is preparing to reduce public transportation fare by a maximum of 3 percent this week.
Officials of the Department of Transport Management (DoTM) said preparations were underway to slash transportation fare by up to 3 percent this week. “Fuel prices have come down significantly over the past four months. We are reducing the fare based on the drop in prices of petroleum products,” the official told Republica.
Price of petrol has fallen by Rs 23 per liter to Rs 109 over the last four months. Similarly, price of diesel has dropped by Rs 18.5 per liter to Rs 86.5.
It will be the second reduction in transportation fare in less than two months. The government had reduced fare by a nominal 1 percent in December. After drawing flak from all quarters for nominal reduction in fare despite significant drop in fuel prices, the government had later reduced fare by at least Re 1.
“Transportation fare is being reduced on the basis of Scientific Fare Determination Mechanism,” Madhu Sudan Burlakoti, director general of the department, told Republica. “The fare, this time, is being reduced only on the basis of fuel price.”
The Scientific Fare Determination Mechanism adopted by the government in 2009 allows government to revise transportation fare once a year based on fuel and different non-fuel parameters. The mechanism gives a 35 percent weightage to fuel factor.
“We have not finalized the rates yet; we have prepared a rough draft. We will send a recommendation letter to the Ministry of Physical Planning and Transport (MoPPT) to reduce fare price on Sunday evening,” he said, adding, “We will take an official decision once the ministry gives us go-ahead.”
Burlakoti said he was hopeful that the transportation fare will be revised within few days. According to him, taxi fare, which has not been revised since long, will also be revised this time.