Feb 12, Kathmandu - The Department of Transport Management has started preparations to set separate fares for electric vehicles. Although the fares have been fixed on the basis of diesel buses so far, the department has stated that internal discussions have now started on setting new rates based on the actual operating costs of EV buses.

According to the department, it is estimated that the fares can be reduced somewhat as the fuel costs of electric buses are lower. According to the initial proposal, there are indications that the fares could be reduced by about 10 percent.

Before making a decision, the department is preparing to consult with businessmen, transport organizations and other stakeholders. It is said that the final decision will be made public based on consensus.

Meanwhile, transport businessmen have said that the fares should not be reduced only on the basis of fuel costs. They are of the opinion that the fares should be determined scientifically by including the purchase cost of the vehicle, battery replacement, maintenance, technology and insurance costs.

If the proposed system is implemented, urban and long-distance passengers are expected to get some relief.