Jul 01, Kathmandu - With the recent decrease in fuel prices, discussions are underway regarding adjustments to public transportation fares across Nepal.

The Nepal Oil Corporation announced a reduction of NPR 20 per liter in petrol and NPR 30 per liter in diesel, effective from last night. This significant cut is expected to lead to a corresponding decrease in fares for passenger vehicles.

The Department of Transportation has already begun technical preparations to establish new fare rates based on a scientific fare system. In the past, when fuel prices increased, a 13% fare hike was recommended according to this system, but the government only increased fares by 5% to provide relief to the public. Transport operators expressed dissatisfaction over the limited increase, citing unrecouped costs.

Now, with the sharp decline in fuel prices, operating costs are expected to decrease considerably, and transport businesses are ready to adjust fares accordingly. The department is in the process of determining new fares based on factors such as fuel, lubricants, maintenance, and other indicators.

Passenger vehicle fares are anticipated to decrease, though the exact reduction is still under discussion. Meanwhile, freight transportation fares are unlikely to see immediate significant reductions.