Kathmandu, July 3

Though the price of petrol and diesel has come down by Rs 3.5 per litre each in less than one month, the government is in no mood to slash public transportation fare anytime soon.

Citing that the Scientific Fare Determination Mechanism of the government allows the new adjustment in public transportation fare only after change in fuel price by at least five rupees per litre from the previous adjustment, the Department of Transport Management (DoTM) has said that the public transport fare would not be reduced despite recent drop in fuel price.

This means that the decision taken on Sunday to reduce the fuel price will not benefit commuters.

The state-owned fuel supplier had reduced the price of petrol and diesel by two rupees per litre each to Rs 98 per litre and Rs 74 per litre, respectively. Nepal Oil Corporation had last reduced the price of petrol and diesel by Rs 1.5 per litre each on June 16.

“We shall only reduce the public transport fare once the price of petrol and diesel gets cheaper by five rupees per litre compared to their price during the previous adjustment in public transport fare. Petrol and diesel cost Rs 99 per litre and Rs 75 per litre, respectively, while the public transport fare was adjusted last time,” Tok Raj Pandey, spokesperson for DoTM, said.

The public transport fare was last adjusted on September 11, 2015.

DoTM adjusts public transportation fare after studying different indicators where fuel holds 35 per cent weightage. Other indicators include price of automobiles, lubricants and wages of transporters.

The government mechanism also requires DoTM to adjust new public transport fare every year on the basis of change in price of aforementioned indicators.

However, DoTM is in no mood to revise public transportation fare for the upcoming fiscal year stating that there has been no substantial change in different indicators that are to be considered while calculating the fare.