The Karnataka government has decided to establish a Public Transport Fare Regulatory Committee (PTFRC) that will recommend bus fare revisions once every two years, in line with the model followed by the Karnataka Electricity Regulatory Commission (KERC). The move aims to ensure financial sustainability of the state’s four Road Transport Corporations (RTCs) while attempting to avoid sudden fare shocks to commuters.
Panel structure and mandate
The three-member committee will be headed by a retired Additional Chief Secretary or a High Court judge. The other two members will include a retired Principal Secretary or Secretary with legal expertise and a financial or industry expert. The managing director of the Karnataka State Road Transport Corporation (KSRTC) will serve as the member-secretary.
According to the draft notification issued by the Transport Department, the committee will have a three-year tenure and meet at least every three months. It will study the financial health of RTCs, consider costs of fuel, spare parts, maintenance, bus purchases and staff salaries, and then recommend fare revisions, surcharges or additional fees.
Periodic fare revisions
Transport Minister Ramalinga Reddy said the state would revise fares every two years. “We will revise the fares like how the KERC does with power tariffs. A small increase every two years will not burden the public much, but will help RTCs remain sustainable,” he said.
Officials noted that fares are often not revised due to political reasons. For instance, while BMTC fares were last revised in 2014, the next revision came only in 2025. Other RTCs had revised fares in 2020 and then again in January 2025, when a 15 per cent hike was implemented.
Rising costs put pressure on RTCs
KSRTC managing director Akram Pasha stressed the need for systematic adjustments. “Daily diesel expenditure has risen from ₹7 crore in 2014 to ₹13 crore in 2025, and staff costs from ₹6 crore to ₹12 crore in the same period. Without periodic hikes, RTCs will face financial crises,” he explained.
Sources indicated that the upcoming fare revisions could range between 2 to 3 per cent, and up to 5 per cent in some cases. The committee is expected to be in place by the end of the year, with offices likely located at the BMTC complex in Shanthinagar.
Wider transport tariff reforms
The move comes amid a broader push for rationalising public transport fares in Karnataka. The state government has already allowed Namma Metro to increase fares by up to 5 per cent every year from February 2026, following an average 51.55 per cent hike in February 2025. Similarly, auto fares in Bengaluru were revised upward by 20 per cent in August 2025, with the government promising more frequent reviews to reflect rising costs.
Public participation and oversight
The draft notification provides for representations from NGOs, public organisations and transport unions. Objections or suggestions regarding the new fare regulation mechanism may be submitted to the Transport Secretary in Bengaluru by October 8.
By creating a statutory mechanism for bus fare revisions, the government hopes to depoliticise decisions that directly affect lakhs of daily commuters. Whether periodic fare hikes will strike the right balance between financial sustainability of RTCs and affordability for the public remains to be seen.