The recent hike in diesel prices by the Centre will result in an additional burden to the tune of Rs 630 crore to all the four state-owned transport corporations in Karnataka. The transport corporations purchase diesel on a wholesale basis and the price for each litre has gone up Rs 11.95 to Rs 62.29 a litre now.
To avoid falling deep into the red, the state government is planning to effect a rise in the bus fares for its four transport corporations. A decision to this effect is likely to be announced by Monday, official sources said.
The state operates the Karnataka State Road Transport Corporation (KSRTC), North Eastern Karnataka Road Transport Corporation, North Western Karnataka Road Transport Corporation and Bangalore Metropolitan Transport Corporation (BMTC).
The government is working out the quantum of the price rise to be effected and the decision is likely to be announced by Monday in consultation with the heads of all transport corporations, official sources said.
BK Singh, in-charge managing director of KSRTC, said, the corporation would finalise the decision on a price hike in a day or two. At present, KSRTC’s fuel costs are in the range of Rs 950 crore per annum (about 35 per cent of the total revenues) and it operates 7,837 buses including 500 Volvo buses. The corporation recently increased wages for its employees, and this will cost it an additional Rs 60 crore. “The rise in diesel prices is not good for the transport corporations. We have recently increased dearness allowance for our employees and together with the hike in diesel prices our staff and fuel costs are set to rise. We will have no choice but to pass on the burden to passengers,” Singh said.
There are 110,000 employees on the rolls of the four transport corporations and they together operate about 23,000 buses. The BMTC, which runs 6,600 buses in Bangalore City, would incur an additional burden of Rs 15-18 crore per month on diesel.
“We are going to raise the bus fares. However, it is too early to say what would be the rise in fares. We are currently working out how much we can absorb and how much to be passed on to the passengers,” a BMTC official said.
The Centre had increased diesel prices by Rs 6.13 per litre on September 14, 2012, which had resulted in additional burden of Rs 323 crore for the state transport corporations. On January 1, 2013, the diesel prices had gone up 12 paise, causing an additional burden of Rs 6.49 crore for them. With the latest hike in prices, the cost of diesel in Karnataka has gone up to Rs 62.29 per litre as against Rs 50.34 per litre, an increase of 23.74 per cent.
