Hike in fuel price likely to trigger revision of bus fare in Karnataka

BENGALURU: With the rise in fuel costs, travelling on buses of road transport corporations (RTCs) may become more expensive, impacting lakhs of passengers.
The state govt's decision to hike diesel price by Rs 3 per litre has left RTCs worried. Officials say a rise in fuel prices would result in increased operational costs for running buses. For instance, Karnataka State Road Transport Corporation (KSRTC) procures 6.2 lakh litres of diesel a day.With the price hike, it requires an additional Rs 18.2 lakh a day to procure fuel. "This comes up to Rs 5.4 crore a month and Rs 65 crore a year," an official said. In the last financial year, the corporation spent Rs 1,828 crore on procuring diesel.
RTCs in the state have been approaching the govt to minimize the impact of increasing operational costs due to the rise in staff salaries and price of fuel, maintenance and more. "There is no doubt the rise in fuel prices is impacting our finances. As it is a policy matter, the state govt will find a way out in addressing this issue," the official said.
The transport utilities have been demanding a bus fare hike ranging from 20% to 25% and are hoping the govt will agree to raise it by 10-15% at least. According to sources, to prevent further financial distress, bus fare revision may become inevitable. In the city, BMTC procures more than 2.5 lakh litres of diesel a day. Because of the price hike, it could end up spending an additional Rs 8.7 lakh a day, which adds up to Rs 32 crore annually. "Expenditure on fuel comprises close to 40% of operational costs. The operational cost of running a city bus stands at Rs 78 per km; the earning per km is close to Rs 66," said a source.
Last revision in 2020
Bus fares of RTCs, barring BMTC, were revised in 2020. In the city, in 2014, bus fares were hiked by 18%, but in 2015, there was a downward revision of 1.5%. However, the state govt will have to be cautious when hiking bus fares. Any upward revision will also burden the exchequer as the reimbursement amount provided under the Shakti scheme will also jump. Under it, all four RTCs have spent Rs 5,561 crore so far for issuing 228 crore tickets for free travel for women.