Truck fares in the port city of Chittagong have also increased by 20 percent due to the same reason, sources said.

The government on May 24 increased the price of petrol from Tk 33 to 35 while the price of diesel and kerosene was re-fixed at Tk 26, raising Tk 3 per litre, only six months into the last fuel price hike.

Some 1800 buses of 34 companies are plying the city.

Several of the companies already started providing their services with hiked price from yesterday, the Association of Bus Companies (ABC) sources said, adding that others will decide on fair raise in a short time.

Different companies providing services at the same route would like to re-fix the fares at consistent rates, sources said.

"Roadstar Company plying Uttara-Motijheel route increased their fare from Tk 25 to Tk 30 from yesterday," ABC convenor Abdul Hamid Sharif said.

"We would not survive if we do not increase the fare by at least 25 percent. Earlier the government increased the fuel price but we did not increase the fare. Now the value of Tk has also decreased against dollar and we have to buy the motor parts, tyres and tubes at increased rates," Abdul Hamid said justifying the increase of bus fare.

The price of iron has also increased, much to the worry of the bus owners, he added.

The rate of government fixed bus fare is Tk .72 per kilometer in the city, but most of the companies charge more than that.