KATHMANDU, July 14: The government has hiked the public transport fares by 28 percent effective from Wednesday.

In the revised rate, the fares of cargo vehicles in hilly region and Tarai region have also been increased by 20 percent and 26 percent respectively.

Citing increased operating costs of public transport, the Department of Transport Management (DoTM) has revised the fares of the public carriers. According to the department, the fares were last revised on September 23, 2018.

“The fares have been revised based on the escalation in major related indicators including the workers’ pay, depreciation amount, operating profits and costs of petroleum products and spare parts over the period,” reads a press statement issued by the DoTM.

As per the existing “scientific” mechanism, the hike in transport fares is determined based on 35 percent increase in fuel and 65 percent rise in non-fuel factors. Non-fuel components include bank interest rates, cost of spare parts, staff salary and administrative and maintenance costs.

According to an agreement between the government and transporters, the fares would be revised if fuel prices increase by more than Rs 5 per liter.

On the pretext of the increasing prices of logistics and petroleum products, transport entrepreneurs for the past few weeks had been demanding the government revise the transport fares. Forwarding a seven-point demand, they even staged a sit-in protest at the DoTM on Tuesday.