After strike, fare hike looms

KATHMANDU, AUG 19 -The smile brought about on common people’s faces by the withdrawal of the nationwide strike called by transport entrepreneurs may be short-lived given an understanding between the government and the entrepreneurs to hike transport fares. Commuters may have to be ready to pay an extra 10 percent in fares within a month if things go as planned by the entrepreneurs.

A government team and the transport entrepreneurs who were negotiating on the demands of the latter agreed to speed up work on increasing the public transport fare and goods carriers’ maximum charge.

The entrepreneurs called off the strike after officials of the Ministry of Labour and Transport Management and the entrepreneurs struck a deal on fare hike and other issues early on Friday morning.


General secretary of Nepal Transport Entrepreneurs National Federation Dol Nath Khanal said the fares would go up by 10-12 percent within a few weeks because of the hike in fuel prices.

Despite an understanding on the fare hike, the government is seeking to delay fare adjustment by keeping in mind the major festivals—Dashain and Tihar—that are just round the corner.

However, the entrepreneurs are mounting immense pressures on the government for early adjustment of the fares, given that the price of diesel has gone up by Rs 5 per litre since July 10.

Last year, the two sides had agreed to adjust the fares if the fuel prices went up by more than Rs 5.

If the government hikes the fares, commuters who are currently paying Rs 12 for a shortest ride will have to pay Rs 13 or Rs 14, according to transport workers.

Government officials and entrepreneurs are scheduled to hold another meeting on fare adjustment on Tuesday. “Work on adjusting the maximum fare of cargo carriers to different destinations across the country is also in the pipeline,” an official said.

In the meantime, representatives of the Labour Ministry agreed to send a recommendation to the Finance Ministry for scrapping a provision in the budget that allows Badi youths to get a waiver of customs duty if they import taxis and operate them. They also agreed to recommend scrapping another provision that allows transport workers to get similar waiver in the duty to operate buses and taxis in Kathmandu Valley and other cities by setting up cooperatives.