What’s happening: The Bangladesh Road Transport Authority (BRTA) has proposed raising intercity bus fares by 20 paisa per kilometre (from Tk2.23 to Tk2.43) and city bus fares in Dhaka and Chattogram by 18 paisa per kilometre (from Tk2.53 to Tk2.73), The Business Standard reported. Minimum fares stay unchanged at Tk10 for buses and Tk8 for minibuses. BRTA cited the government’s recent Tk20-per-litre fuel price increase as the primary driver, alongside rising costs for spare parts since an earlier April adjustment.
Why this matters: Bus transport is the primary mode for millions of low- and middle-income commuters in Bangladesh’s cities and regional routes. A fare increase compounds the inflationary pressure already triggered by the fuel hike, effectively taxing mobility twice — once through higher fuel costs embedded in fares, and again through the direct fare adjustment itself.
Counterargument: Transport owners had initially sought a much larger increase — at least 40 paisa per kilometre — arguing that even the approved 20 paisa doesn’t fully offset their higher operating costs. From this view, the new fares represent a compromise that still squeezes operators’ margins rather than fully passing on cost increases to riders.
Policy implication: Fare-setting mechanisms that react to fuel price shocks on a case-by-case basis create recurring political friction and unpredictable costs for commuters. A more transparent, formula-based fare adjustment mechanism tied to fuel price indices could reduce both the frequency of ad hoc negotiations and the perception of arbitrary rent-seeking by operators.
Recommendation: Regulators should pair fare increases with public disclosure of the cost model used to calculate them, and consider targeted subsidies or fare caps for the lowest-income riders rather than uniform increases that hit everyone equally regardless of ability to pay.
Confidence level: Moderate. The fare figures and stated rationale are well-documented, but the proposal still requires government approval and a gazette notification before taking effect, so implementation details could change.
Related reading: BRTA proposes 20 paisa per km fare hike for intercity buses, 18 paisa for city buses — The Business Standard
