Since fuel prices were increased, the government has repeatedly compared Bangladesh’s fuel rates with those of neighbouring countries.
But one major difference has received less attention: transport fares.
Bus fares for urban, suburban and long-distance routes in Bangladesh are significantly higher than those in West Bengal.
Although Bangladesh Road Transport Authority (BRTA) sets fares, passengers often pay more through various practices. Despite repeated warnings, authorities have failed to effectively prevent overcharging, while passengers have little scope to seek redress.
Police do not have the authority to take action against fare violations, while BRTA lacks sufficient manpower.
“The administrative weakness is mainly responsible for the chaos in the country’s road transport system. The authorities cannot protect passengers’ interests or control transport owners and workers,” Ashis Kumar Dey, general secretary of the National Committee to Protect Shipping, Roads and Railways, told TIMES.
Transport expert Professor Shamsul Hoque said BRTA had become ineffective as a regulator.
“Unless the organisation, which is filled with non-technical personnel, is completely restructured, discipline cannot be restored in the road transport sector,” he told TIMES.
Fares rise with fuel, but rarely fall
In West Bengal, bus fares have not increased in the past eight years despite several fuel price hikes. In Bangladesh, fares have increased four times during the same period.
Even after diesel prices fell by Tk13 per litre in six phases since 2022, bus fares remained unchanged.
In Bangladesh, fares were increased following diesel price hikes in November 2021, August 2022, April this year and 20 September.
Each time, operators collected more than the officially approved fares. BRTA issued warnings for a few days, but the higher rates eventually became normal.
When diesel prices fell by Tk5 per litre on 31 August 2022, Tk0.75 on 7 March 2024, Tk1.25 on 1 September 2024 and Tk2 each on 1 June 2025, 1 January this year and 1 February, bus fares were not reduced.
Government announcements to cut fares by 5 paisa, 2 paisa or 3 paisa per kilometre were also not implemented.
After diesel prices were raised in April this year, making them only Tk2 higher than in August 2022, bus fares increased beyond the levels of that period.
“In 2018, the state government increased bus fares when diesel was priced at Rs65 per litre. Now fuel costs Rs100 per litre, but fares have still not been increased,” said Pradip Narayan Basu, general secretary of the West Bengal Bus and Minibus Owners’ Association.
Fare system favours operators
West Bengal follows a fare structure where the per-kilometre cost decreases as passengers travel longer distances.
In Kolkata, the minimum fare for up to 4 kilometres is Rs10. It rises to Rs12 for up to 8 kilometres and Rs15 for up to 12 kilometres.
This means the fare is Rs2.50 per kilometre for shorter journeys but falls to Rs1.25 per kilometre for a 12-kilometre journey.
For long-distance ordinary buses, the fare starts at Rs10 for the first 4 kilometres, with an additional Rs0.70 charged for each extra kilometre.
In Bangladesh, however, fares are fixed uniformly on a per-kilometre basis. A passenger travelling 5 kilometres pays the same rate per kilometre as one travelling 30 kilometres.
The fare is Tk2.70 per kilometre in Dhaka and Chattogram metropolitan areas, Tk2.59 in suburban areas and Tk2.40 for long-distance routes.
A passenger travelling 86 kilometres from Dhaka to Bhairab pays the same per-kilometre rate as someone travelling 438 kilometres from Dhaka to Panchagarh, even though operating costs fall over longer distances.
River transport follows a different model, with fares declining for longer journeys. The current rate is Tk3.17 per kilometre for the first 100 kilometres and Tk2.71 beyond that.
“Normally, fares should increase at a lower rate for longer distances. But buses do not follow this principle. It reflects BRTA’s weakness, irregularities or its leniency towards transport owners,” Ashis Kumar Dey said.
How passengers pay more
Large buses calculate fares based on 51 seats. However, on many long-distance routes, operators calculate fares based on 40 seats despite buses having 44 to 47 seats.
This means passengers effectively pay higher fares as operators reduce the number of seats used for fare calculations.
Another method is inflating distances.
Although the road distance from Dhaka to Kishoreganj via Kapasia is 102 kilometres, bus operators calculate fares based on 130 kilometres.
In urban transport, fares are often collected through fixed-distance “waybills” rather than actual distances travelled.
Passengers are charged the full fare for a section even if they get off earlier.
There are also instances in Dhaka where passengers pay Tk4 or more per kilometre.
“Displaying updated fare charts according to distance is mandatory, but the government has never been able to ensure this,” Ashis Kumar Dey said.
Fare calculations assume 70 per cent passenger occupancy. For example, if a bus has 47 seats, fares are calculated based on 28 passengers — 70 per cent of the approved 40-seat capacity.
However, city buses are often overcrowded, while long-distance buses rarely run with empty seats.
“The government itself allows owners to dominate the fare-setting process. It says all stakeholders are consulted, but where are the representatives of ordinary passengers?” said Khandaker Mozammel Haque, secretary general of the Passengers Welfare Association.
Attempts to contact BRTA Chairman Mohammad Habibur Rahman for comments were unsuccessful.
Extortion adds to costs
A bus owner in Kishoreganj said a bus has to pay around Tk2,000 daily in various forms of extortion.
The payments include money collected by transport owners’ associations in two districts, as well as owners’ and workers’ unions in Bhairab and Narsingdi.
The owner also alleged regular payments to police.
“We have to pay every highway police station every month. We call it monthly,” he said.
He alleged that additional payments include Tk5,000 during annual fitness renewal, Tk5,000 every three years for route permits and Tk8,000 during new vehicle registration.
Bangladesh Road Transport Owners Association Joint General Secretary Kazi Md Jobair Masud said running transport services involved several costs.
“Organisations and associations look after these issues. Intelligence agencies, administration, police and journalists are also working on the matter. A long-standing process cannot be stopped overnight,” he told TIMES.
Chowdhury Zafar Ahmed, secretary general of the Bangladesh Truck-Covered Van and Goods Transport Owners Association, said transport operators also faced unofficial payments.
“In goods transport, we have to pay Tk50 to Tk100 in different areas to workers’ unions. We also have to pay monthly amounts to the police administration for each vehicle. These costs increase expenses,” he said.
Police have rejected allegations of involvement.
Dhaka Metropolitan Police Additional Commissioner (Traffic) Md Anisur Rahman said, “I have no knowledge about this.”
Additional DIG of Highway Police Faruk Ahmed did not respond to calls.
Shortage of small notes adds pressure
In urban transport, passengers often pay extra because of a shortage of small change.
Fares are usually fixed at Tk10, Tk15 or Tk20, leaving little scope for passengers to pay exact amounts such as Tk11, Tk12 or Tk13 based on distance.
Bangladesh Bank has stopped issuing small-denomination notes for many years, while coins are no longer produced.
Bangladesh Bank spokesperson Arief Hossain Khan said the reduced use of small notes and coins was not due to any specific reason.
“However, their use has declined compared to the past. For transactions such as bus fares, amounts like Tk10, Tk15 or Tk20 are now generally used. We are giving more importance to printing notes of other denominations,” he told TIMES.
Professor Muhammad Shahadat Hossain Siddiquee of the Department of Economics at Dhaka University said, “This can be identified as a form of governance failure. Due to the shortage of Tk1 and Tk2 notes, producers are making substantial profits across the board, from vegetable markets to transportation.”
