Karnataka: KSRTC bus fares likely to rise in early 2025 amid financial strain
The Karnataka government may increase fares for state transport corporations in early 2025 to address financial losses. Rising diesel prices, salary revisions, and unchanged fares since 2014/2020 have added to the burden. A decision is expected after discussions with unions post-Sankranti.
FollowThe Karnataka government is considering a fare hike for the four state road transport corporations to address their growing financial challenges. A decision on the increase is expected in the early months of 2025, with discussions gaining momentum. Transport employees' organizations are also set to press for the fare revision during their scheduled meeting with the Chief Minister after January 15.
The last fare increase for Bengaluru Metropolitan Transport Corporation (BMTC) was in 2014, while the fares for Karnataka State Road Transport Corporation (KSRTC), North Western Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC) were revised in 2020. At the time, diesel prices were significantly lower—₹55 for BMTC's revision and ₹75 for the others. However, diesel now costs ₹89 per litre, adding to the financial strain on these corporations.
Over the past five years, the corporations have collectively incurred a loss of ₹5,209.35 crore and liabilities amounting to ₹6,244.29 crore. Despite rising operational costs, the fares have remained unchanged, prompting the corporations to urge the government for an increase.
Transport corporations had submitted a proposal for a 15% fare hike earlier this year. However, fearing backlash from the public during the Lok Sabha election period, the proposal was delayed. Now, with growing support from transport employees' unions, a fare hike of 10-12% seems more likely.
Union leaders argue that the lack of fare revision has limited corporations' incomes, resulting in financial difficulties for employees. They plan to push for the fare increase during their meeting with the Chief Minister.
The rising cost of diesel has added ₹4 crore to the transport corporations' daily expenses. Previously, fuel costs amounted to ₹9.16 crore daily, but this figure has now risen to ₹13.21 crore. Additionally, the recent salary revision for employees from March 2023 has increased monthly expenses by ₹54.23 crore.
Despite these challenges, student bus pass fares have not been revised since 2012, and BMTC fares have remained unchanged for over a decade. The financial burden continues to grow, making a fare hike inevitable.
Transport Minister Ramalinga Reddy acknowledged the financial difficulties faced by the corporations but stated that the decision to increase fares rests with the government and the Chief Minister.
- BMTC fares last increased in 2014; others revised in 2020.
- Diesel prices have risen from ₹55 in 2014 to ₹89 in 2024.
- Corporations incur a daily loss of ₹4 crore due to higher fuel costs.
- Salary revisions and rising operational expenses have added to the burden.
- Employee unions and transport corporations are advocating for the hike.
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