Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The government is preparing to increase public transport fares across Nepal, with proposed hikes reaching up to 21.68 percent, as rising fuel prices continue to strain the country’s transport sector.
According to officials at the Department of Transport Management, the fare adjustment decision is expected to be finalized as early as Wednesday following approval from the Ministry of Physical Infrastructure and Transport.
A senior official at the department confirmed that the proposed revision aligns directly with the recent increase in petroleum prices, which has significantly raised operational costs for transport operators.
Under the proposed structure, passenger vehicle fares are set to rise by 16.71 percent. Freight transport will see steeper increases, with goods carriers operating on hilly routes facing a 21.68 percent hike, while those in the Terai region are expected to see a 15.75 percent increase.
The move is likely to have immediate ripple effects across the economy, particularly in consumer prices, logistics, and supply chains. Higher transport costs typically translate into increased prices for essential goods, placing additional pressure on households already grappling with inflation.
Transport entrepreneurs have long been lobbying for fare adjustments, arguing that previous rates had become unsustainable due to escalating fuel prices, maintenance costs, and currency pressures. However, consumer rights advocates warn that the proposed hike could disproportionately impact low- and middle-income commuters who rely heavily on public transport.
Officials say the revised fare structure will be implemented nationwide once formally approved, with enforcement mechanisms to be overseen by transport authorities.
The development comes at a time when Nepal’s broader economic environment remains sensitive to global energy price fluctuations, underlining the structural vulnerability of its import-dependent fuel system.
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