Proposal to raise launch fares by up to 60 percent

After the price of fuel oil was increased by Tk 20 per litre, the Bangladesh Inland Waterways Transport Association has proposed raising launch fares by up to 60 percent. It has been proposed to increase the fare per kilometre from Tk 2.95 to Tk 4.45 for distances up to 100 kilometres, and from Tk 2.52 to Tk 4.02 for distances over 100 kilometres.

The organisation's president, Golam Nabi Alamgir, made the proposal in a letter submitted to the Ministry of Shipping on Tuesday.

The letter stated that if the fare per kilometre is increased by Tk 1.50 for distances up to 100 kilometres, fares will rise by 51 percent in that case. If fares are increased at the same rate, fares will rise by 60 percent for distances over 100 kilometres. At the same time, a proposal was made to increase the minimum fare per passenger from Tk 32 to Tk 35.

The organisation said the government increased the price of diesel from Tk 115 to Tk 135 per litre late last Sunday. This has increased fuel costs by about 18 percent. As the launches used for passenger transport on inland waterways run on diesel and mobil, the fuel price hike will directly affect operating costs.

The letter stated that various fees and charges of the Bangladesh Inland Water Transport Authority (BIWTA) have already increased. These include a 30 percent increase in conservancy charge, a 50 percent increase in route permit fee and a 114 percent increase in berthing charge. The organisation also claimed that the route permit application fee for vessels has been increased by 60 percent.

The letter also mentioned that new fees have been fixed for special permission of vessels, restoration of suspended route permits and changes in ownership, name or registration.

The launch owners' organisation claimed that workers' wages, various fees including vessel survey and registration, and income tax and VAT expenses have also increased. Alongside this, the prices of launch plates, angles, propellers, engine spare parts, welding rods, gas, paint and spare parts, as well as various operating costs including docking, have increased by 50 to 100 percent in some cases.

The letter further stated that due to the improvement of the road communication system, many passengers are currently travelling by road. As a result, launch owners are facing financial losses as the launches are not getting passengers according to their capacity.

In this situation, the Bangladesh Inland Waterways Transport Association has demanded approval to increase passenger fares at the proposed rate or withdrawal of the increased diesel price to keep the launch business afloat.