The fare will be costlier by one rupee for 25 km and two rupees for 45 km in 'Palle Velugu' rural service buses. Similar increase would be effected in ordinary bus services in cities. The hike comes into effect from midnight.
As many as 1.50 crore people travel by the APSRTC buses every day.
"The hike in diesel price causes an additional burden of Rs 357.75 crore. The increased burden has created an unbearable situation. The shut downs and agitations have also made the organisation suffer," APSRTC said in a release.
The increase in price of diesel and other expenses puts an estimated burden of Rs 734.90 crore for the year, while the income would be only Rs 362.90 crore, it said.
Opposition parties decried the fare hike with TDP Chief N Chandrababu Naidu warning of agitation if the hike was not rolled back. CPI and CPI(M) have also given call for state-wide protests.