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Fuel price rise: Launch operators seek up to 60pc fare hike

Fuel price rise: Launch operators seek up to 60pc fare hike
File photo: Collected
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The Bangladesh Inland Water Transport (Passenger) Association has proposed increasing launch fares by up to 60 per cent after the government raised fuel oil prices by Tk20 per litre.

The organisation proposed raising the per-kilometre fare for journeys up to 100 kilometres from Tk2.95 to Tk4.45 and for distances exceeding 100 kilometres from Tk2.52 to Tk4.02.

In a letter submitted to the Ministry of Shipping on Tuesday, the association’s President Golam Nabi Alamgir made the proposal. The letter said a Tk1.50 increase per kilometre for distances up to 100 kilometres would raise fares by 51 per cent, while the same increase for longer routes would result in a 60 per cent hike. It also proposed increasing the minimum fare per passenger from Tk32 to Tk35.

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The letter said the government increased the price of diesel from Tk115 to Tk135 per litre on Sunday night. This has raised fuel costs by around 18 per cent. As launches operating on inland waterways use diesel and lubricant oil, the association claimed the price increase would directly affect operational costs.

The association claimed that various fees and charges imposed by the Bangladesh Inland Water Transport Authority (BIWTA) have already increased. It said conservancy charges have risen by 30 per cent, route permit fees by 50 per cent and berthing charges by 114 per cent. The fee for applying for a vessel route permit has also increased by 60 per cent.

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The organisation also said new fees have been introduced for special permits for vessels, reinstatement of suspended route permits and changes in ownership, names or registration. It added that expenses related to workers’ wages, vessel surveys, registration fees, income tax and VAT have also increased.

The launch owners’ association claimed that the prices of launch plates, angles, propellers, engine spare parts, welding rods, gas, paint and other spare parts, along with docking costs, have increased by 50 to 100 per cent in some cases.

The letter further said that improvements in road connectivity have led many passengers to shift to road transport. As a result, launches are failing to carry passengers according to their capacity, causing financial losses for owners.

In this situation, the Bangladesh Inland Water Transport (Passenger) Association demanded approval for the proposed fare increase to sustain the launch business or withdrawal of the increased diesel price.

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