Bengaluru, Jun 10: The Karnataka State Road Transport Corporation (KSRTC) has forwarded a proposal to the state government, seeking approval for a potential increase in bus fares. This move comes in response to a significant surge in the maintenance expenses of the buses.
Ever since the Congress government took office in May 2023, women have been granted free travel on KSRTC buses. However, alongside this policy change, the costs associated with diesel, spare parts, and bus maintenance have skyrocketed, prompting the corporation to consider adjusting fare rates.
The last revision in KSRTC bus fares occurred in 2020, and since then, there have been notable shifts in various factors. Notably, the price of diesel has risen from Rs 61 per litre to Rs 90 per litre.
A senior official at KSRTC disclosed that the proposal suggests a fare hike ranging from 25 to 30 percent. He emphasized that over 45% of the corporation’s revenue is allocated to diesel expenses, with fuel prices witnessing a staggering 50% increase over the past four years.
Similar to the National Highways Authority of India (NHAI) adjusting toll gate charges annually based on the Wholesale Price Index (WPI), bus corporations follow a formula for fare adjustments. Considering a 20 percent rise in employee salaries and a 46 percent surge in diesel and spare parts costs, the proposed increase in ticket prices stands at 40 percent. However, the primary objective, as stated by an official, is not profit maximization but rather sustaining bus operations without incurring losses.
Highlighting the financial challenges faced by KSRTC, the official further remarked, “The government is anticipated to endorse our proposal this year. Despite annual budget allocations for purchasing new buses, enhancing employee salaries, and expanding bus stations, the absence of grants post the Shakti scheme announcement has compelled us to rely solely on our generated revenue for managing the state transport corporation.”
Transport minister Ramalinga Reddy corroborated receiving the proposal from KSRTC to revise prices, signaling potential changes in the fare structure in the near future.