In a second shocker after the recent increase in city bus fares, the Karnataka State Road Transport Corporation (KSRTC) today announced about eight per cent hike in its fares with immediate effect to offset the increase in financial burden.
The increase in KSRTC fare comes eight days after the Bangalore Metropolitan Transport Corporation (BMTC) hiked the fares by 15 per cent to cover its losses.
The increase of fares for ordinary services is limited to only 7.66 per cent to reduce burden on rural passengers, the KSRTC said in a release.
KSRTC said Union government is increasing the prices of high speed diesel every month. The average increase is to the extent of 60 paise per litre per month. The high speed diesel oil price has increased by Rs 7.21 per litre since the last revision of bus fares.
It said the financial burden on the corporation due to fuel price hike will be Rs 105.05 crore per annum.
Adding to that KSRTC said as per the fare revision formula approved by government, the dearness allowance increase to employees are also to be factored in for fare revision, which will be Rs 102.77 crore. Overall increase in operational cost is Rs 207.82 crore per annum.
Stating that with the fare increase, additional revenue mobilisation expected per annum is Rs 123.87 crore and the additional cost is Rs 207.82 crore, the release said there will be a deficit of Rs 83.95 crore per annum, which will be mobilised by improving the efficiency or operation.
The North-West Karnataka Road Transport Corporation and North-East Karnataka Road Transport Corporations are also revising bus fares with immediate effect in the same proportion, the release noted.