The Physical Infrastructure Ministry is likely to okay the new tariff in the next two weeks. The department stated that it had to increase the fare as it has not been revised in almost five years. The proposed hike is based on components including the consumer price index, growing maintenance expenses and staff salary, it added.
“We asked the government to increase the taxi fare last week,” said Sarad Adhikari, technical director of the Transport Department. He added that taxi operators had long been demanding that the fare be increased, but it had not been able to do so because it wanted to carry out a study first.
A three-member committee formed under the coordination of director of the department Sarad Adhikari had carried out the survey taking into account inflation, fuel prices and wages. Besides a hike of Rs 5 per km, the department had also proposed increasing the flag down rate from Rs 10 to Rs 14. “The new fare is likely to be approved within 15 days,” said a senior official at the Physical Infrastructure Ministry.
Even though the government had been regularly adjusting transport fares on the basis of fuel prices, the flag down rate has not changed for the last eight years, said the Nepal Metre Taxi Entrepreneurs’ Association.
Taxi operators had demanded that the fare be hiked to Rs 38.5 per km. “Maintenance, lubricant, tyre and spare parts costs have shot up in the last three-four years,” said Ram Bahadur Shrestha, former president of the association.
In March 2012, the government had increased taxi fare s by 8.19 percent to Rs 32 per km on the basis of gasoline prices. At that time, petrol cost Rs 116 per litre which has now increased to Rs 123 per litre.
According to Shrestha, there are an estimated 15,000 cabs in operation across the country including 7,000 in Kathmandu and 5,000 in Pokhara.
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