Fuel price hike adds ₹40 crore burden on Karnataka RTCs in 10 days
Karnataka's four State-run Road Transport Corporations (RTCs) have faced an additional burden of nearly ₹40 crore due to a recent spike in diesel prices. The continuous rise in fuel costs has significantly impacted the financial health of these corporations, with a monthly burden potentially reaching ₹480 crore if the trend continues. Despite the losses, there are currently no proposals to increase bus fares, as no RTC has submitted a request for fare revision.
- ▪The recent increase in diesel prices has added nearly ₹40 crore to the burden of Karnataka's RTCs in just ten days.
- ▪Diesel prices have risen by ₹7.82 per litre, leading to an additional expenditure of around ₹25 crore for the RTCs.
- ▪Fuel and employee expenses account for a major share of RTC expenditure, with 83.64% of revenue spent on these costs.
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The recent sharp increase in diesel prices has imposed an additional burden of nearly ₹40 crore on Karnataka’s four State-run Road Transport Corporations (RTCs) within just ten days, State Transport Minister Ramalinga Reddy said.Speaking to The Hindu, Mr. Reddy said that the continuous rise in fuel prices was worsening the financial health of the four RTCs in the State. “In the last few days, diesel prices have increased by ₹7.82 per litre. Due to the first three hikes alone, the four RTCs have already incurred an additional expenditure of around ₹25 crore.
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