Bengaluru: Bus commuters across Karnataka may soon have to pay more for travel as relentless fuel price hikes pile 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.
Fuel cost burden on corporations
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. “Fuel prices have been revised four times in the last two weeks, and there are indications of further hikes. This will increase the financial burden. Under these circumstances, a bus fare revision may become unavoidable,” the official said.
BMTC faces daily fuel cost spike
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 that the final decision rests with the government.
Corporations already under debt
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 operational expenditure, while fuel costs constitute 32.5%. The corporations together employ 1.1 lakh staff. Recently, the government approved a 12.5% wage revision for employees, while trade unions have demanded a 25% hike.
Government's stance on fare revision
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 government,” he said.
In January 2025, the corporations had revised bus fares by 15%. In October 2025, the government 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. The committee is meant to do periodic revision of fares. However, it is not yet functional as the government has not appointed the chairperson and members.
