Bus Owners Demand for a 64% Rise in Bus Fare

Despite repeated assurances that prices would not rise, the government suddenly announced an increase in fuel prices on Saturday night. The impact was visible on the streets by Sunday morning as public transport became scarce.

While transport owners have not made an official declaration, they are unwilling to operate vehicles at previous fares after purchasing fuel at higher rates. Under these circumstances, the government has decided to "coordinate" public transport fares.

A meeting of the fare fixation committee is scheduled for this (Sunday) evening based on a draft proposal submitted by the owners' association. The Bangladesh Road Transport Authority (BRTA) has already begun preparations and sent notices to stakeholders to attend the meeting.

A BRTA official and a leader of the owners' association confirmed that a draft proposal regarding the potential fare hike has been prepared. According to the proposal, transport owners intend to push for a 64 percent increase in bus fares within metropolitan areas, including Dhaka and Chattogram. For long-distance routes, they are seeking a 37 percent hike.

According to current BRTA records, riders in metropolitan areas pay 2.42 BDT per kilometer, while long-distance passengers pay 2.45 BDT per kilometer. If the owners' proposal is accepted, metropolitan fares would rise to 3.96 BDT per kilometer, and long-distance fares would reach 3.36 BDT per kilometer.

Saiful Alam, General Secretary of the Dhaka Road Transport Owners' Association, confirmed he received an invitation to the meeting. He informed Agamir Somoy that he was contacted by the BRTA and asked to prepare for the fare coordination committee meeting this evening.

Efforts were made to contact BRTA Chairman Mir Ahmed Tarikul Omar, but his office stated that they had been unable to reach him since the morning.

The last major fare hike had taken place on August 6, 2022. At that time, metropolitan bus fares rose from 2.15 BDT to 2.50 BDT per kilometer—an increase of 35 paisa. Long-distance fares were raised from 1.80 BDT to 2.20 BDT.

During that period, minibus fares in cities also increased by 35 paisa, moving from 2.05 BDT to 2.40 BDT per kilometer, though minimum fares remained unchanged.

In 2022, the price of diesel increased by 34 BDT per liter, octane by 46 BDT, and petrol by 44 BDT. Following that hike, diesel was priced at 114 BDT, octane at 135 BDT, and petrol at 130 BDT, respectively.

While fuel prices fluctuated and even decreased slightly in several phases since then, the current price hike is not as sharp as the 2022 increase. This time, diesel has risen from 100 BDT to 115 BDT, octane from 120 BDT to 140 BDT, and petrol from 116 BDT to 135 BDT per liter.
Comparing the two price hikes reveals that the current fuel price difference is not significantly higher than that of the 2022. However, there is a massive disparity in the requested fare increases. Back then, the maximum fare increase was 22.22%, whereas transport owners are now discussing a hike of up to 64%.

Kazi Md. Zubaier Masud, Joint General Secretary of the Bangladesh Road Transport Owners' Association, offered a justification for this gap. He argued, "The cost of everything has risen during this period. Labor wages and the price of spare parts have increased. You can't just look at the fuel price; there are many other expenses."

According to Masud, "Back then, a dollar cost 82 BDT. Now it is 130 BDT. Everything we use is import-dependent. Costs have surged by 50% just due to the dollar rate."

Questioning where the subsidy for these costs would come from, he claimed, "The bus fare in Dhaka should be at least 4.10 BDT per kilometer, and 3.50 BDT for long-distance routes. In Dhaka, even after operating for 16 hours, a bus cannot cover 160 kilometers. Even if there is no income, the expenses remain constant."
Previous Requests and Proposals

During the tenure of the interim government, the transport owners' association had already submitted letters requesting fare hikes. These documents show proposals to set metropolitan bus fares at 3.60 BDT per kilometer and long-distance fares at 3.00 BDT per kilometer.

On January 21, 2025, the Bangladesh Road Transport Owners' Association sent a formal letter to the Senior Secretary of the Ministry of Road Transport and Bridges, requesting a re-evaluation of fares for public transport and goods-carrying vehicles. While the letter demanded an increase, it did not specify a exact figure at that time.

However, verbal communications with government officials suggested an increase of 1.18 BDT per kilometer for metropolitan areas and 0.50 BDT for long-distance routes. Discussions regarding these hikes were also raised during the Regional Transport Committee (RTC) meeting in Dhaka that year.

The recommendations submitted in their letter stated:

"The fare for long-distance and metropolitan buses/minibuses set on August 6, 2022, was based solely on the rise in diesel prices. At that time, the price hikes for tires, tubes, lubricants, brake shoes, and other spare parts were not taken into account. Furthermore, due to the lack of a formal policy for determining fares for trucks, pickups, mini-trucks, covered vans, and prime movers, the fares for these goods-carrying vehicles were never coordinated or increased."
Saiful Alam, Secretary General of the Bangladesh Road Transport Owners' Association, stated that it would become nearly impossible to keep vehicles on the road unless fares are increased at logical rates. He questioned why bus fares should remain stagnant when the prices of everything else are rising, adding that if fares are not increased, they would demand a reduction in the price of spare parts.

Typically, bus fare determination involves a comprehensive evaluation of 22 factors, including: Fuel prices, Vehicle purchase costs, Bank loan interest rates, Maintenance and spare parts costs, Overall vehicle quality etc.

Additionally, the fare structure assumes that 30 percent of seats will remain empty to ensure owners do not face losses even when the bus is not at full capacity. Transport owners argue that the last time fares were adjusted, only fuel prices were taken into account, while other critical sectors were ignored despite the rising costs of spare parts.

On the other hand, Mozammel Hoque Chowdhury, Secretary General of the Bangladesh Jatri Kalyan Samity (Passenger Welfare Association), offered a different perspective:
"When fares decrease by a few paisa, passengers never see the benefit. But when they increase, it is enforced immediately. Given that previous price drops were in the range of 3 to 5 paisa, the current increase should not exceed 15 paisa. While owners talk about their various expenses, we as passengers can talk about the quality of service. There is no question of paying premium fares for dilapidated buses with poor service quality."