On Saturday, the Punjab transport department announced a 23-paise per kilometer increase in bus fares for ordinary buses, attributing the rise to escalating fuel costs. This fare adjustment follows a recent state government decision to raise the Value Added Tax (VAT) on petrol and diesel.
The new fare structure sees the cost for ordinary buses rising from 23 paise to 145 paise per kilometre per passenger. The fare hikes extend to other categories of buses as well. Specifically, the fare for Heating, Ventilation, and Air Conditioning (HVAC) buses has been increased by 28 paise to 174 paise per passenger per kilometre. Integral coach fares have risen by 41 paise to 261 paise, and super integral coaches now cost 46 paise more, reaching 290 paise per kilometre.
According to the notification, bus fares will be rounded up to the nearest Rs 5 if the calculated amount exceeds Rs 2.5. For instance, if the fare is calculated at Rs 22.5, passengers will need to pay Rs 25.
The fare hike comes in the wake of a recent VAT increase on petrol and diesel, which was implemented by the Punjab state government. On September 5, the state cabinet approved a rise in VAT on diesel from 12 per cent to 13.09 per cent and on petrol from 15.74 per cent to 16.52 per cent. The VAT increase resulted in petrol prices rising by 61 paise per litre and diesel by 92 paise per litre. Additionally, a 10 per cent surcharge on VAT is applied.
The fare increase and VAT hike are expected to impact commuters significantly, given the substantial rise in transportation costs. Public reaction to the fare hikes and the VAT increase may lead to further scrutiny of the state’s economic policies and their effects on daily life.
The Punjab transport department’s decision to raise bus fares, coupled with the recent VAT increase on fuel, reflects the broader economic challenges and rising operational costs faced by the state. Commuters will now need to adjust to higher travel expenses as a result of these changes.