The steep rise in the bulk purchase price of diesel has come as a huge blow to road transport corporations (RTCs) in the State which are already reeling under heavy financial losses due to the pandemic. The per litre price of diesel went up by ₹17 with effect from March 16. As a result, RTCs, which were buying diesel at ₹90 per litre in the first week of March are now shelling out close to ₹107.
RTCs in the State purchase fuel at bulk purchase rate and rates get revised every 15 days. Bangalore Metro Rail Corporation Limited (BMTC) is spending an additional ₹40 lakh on fuel every day, while the Karnataka State Road Transport Corporation’s (KSRTC) saw its fuel bill rise by ₹90 lakh.
As per the new rate, the RTCs will spend a total of an additional ₹65 crore per month towards fuel purchase. On the other hand, the retail price of diesel in the city is lower at ₹85 per litre.
“The rise in fuel prices is the decision of the Central Government. Earlier we used to spend ₹2.1 crore per day for diesel and now it has gone up to ₹2.46 crore. Whatever we earn from fares now goes towards consumption of fuel,” said an official of the BMTC on condition of anonymity.
The official expressed hope that the State Government would come to its rescue and minimise the burden. BMTC is likely to ask the state government to revise the bus fare to meet the expenses. KSRTC officials are hoping that the State government will implement the Tamil Nadu model where RTCs get a reimbursement if fuel prices rise above a certain rate.
All the four RTCs together purchase 1,254 kilo litres of diesel per day . KSRTC purchases 516 KL of diesel and BMTC 206 KL of diesel.
