Fuel price hike adds ₹480-cr load; officials say bus fare rise inevitable | Bengaluru News


Fuel price hike adds ₹480-cr load;  officials say bus fare rise inevitable

Bengaluru: Bus commuters across the state may soon have to pay more for travel as the relentless fuel price hike piles pressure on state-run transport corporations. With diesel prices rising by Rs 7.8 per litre in just two weeks following four consecutive hikes, officials indicated that a bus fare revision could become unavoidable if the trend continues.The four state-run transport corporations together consume nearly 16.4 lakh litres of fuel every day, and the recent increase in diesel prices is expected to impose an additional annual burden of nearly Rs 480 crore. The mounting fuel bill has raised concerns within the corporations, which say sustaining operations without revising fares could become increasingly difficult.A senior official of the Karnataka State Road Transport Corporation (KSRTC) said salaries and fuel account for the two largest operational expenses of the corporations. “Fuel prices have been revised four times in the last two weeks, and there are indications of further hikes in the coming days. This will increase the financial burden on the corporations. Under these circumstances, a bus fare revision may become unavoidable,” the official said.An official of the Bangalore Metropolitan Transport Corporation (BMTC) said the bulk procurement price of diesel has increased from Rs 87.04 to Rs 94 per litre in two weeks. “BMTC procures more than three lakh litres of fuel every day. The latest hike alone has increased our fuel expenditure by Rs 21 lakh per day. This comes at a time when operational costs are already rising due to employee wage revisions and other expenses,” the official said.The official added the final decision rests with the govt.The four road transport corporations — KSRTC, BMTC, North Western Karnataka Road Transport Corporation (NWKRTC) and Kalyana Karnataka Road Transport Corporation (KKRTC) — are already burdened with cumulative liabilities of over Rs 7,130 crore. Pending dues include Rs 2,298 crore towards provident fund liabilities and Rs 822 crore in fuel-related payments.At present, employee salaries account for 46.1% of the operational expenditure of the corporations, while fuel costs constitute 32.5%. The corporations together employ 1.1 lakh staff. Recently, the govt approved a 12.5% wage revision for employees, while trade unions have demanded a 25% hike in salaries.Transport minister Ramalinga Reddy said the continuous increase in fuel prices was affecting the finances of the corporations. “With regard to a fare hike, the respective corporation boards have to forward a proposal to the govt,” he said.In Jan 2025, the corporations had revised bus fares by 15%.In Oct 2025, the govt issued a notification for the formation of a Public Transport Fare Regulatory Committee to be headed either by a retired high court judge or a retired IAS officer of the rank of additional chief secretary. Purpose of the committee is to do periodic revision of the fare. However, the committee is not yet functional as the govt has not appointed the chairperson and members.



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