Mumbai: The Maharashtra State Road Transport Corporation (MSRTC) is considering a fare hike as rising diesel costs strain its finances, chairman Pratap Sarnaik announced on Thursday. The recent increase in diesel prices by Rs 3 per litre has added an extra burden of Rs 124 crore annually to the state bus corporation, according to sources.
Fuel Cost Impact
MSRTC requires an average of 10.87 lakh litres of diesel daily, supplied by Indian Oil Corporation. The price per litre rose from Rs 88.21 to Rs 91.31, an increase of Rs 3.10 per litre, Sarnaik said. This hike means the corporation is bearing an additional expenditure of approximately Rs 33.7 lakh per day, translating to about Rs 10 crore per month and Rs 124 crore annually.
Financial Challenges
Sarnaik highlighted that MSRTC is facing financial difficulties, having incurred a loss of approximately Rs 76 crore in April 2026. Rising fuel costs are directly impacting the corporation’s financial position, making a fare revision necessary. However, he clarified that no fare hike would be implemented immediately. A proposal for fare revision, aligned with the fuel price increase, will be submitted to the State Transport Authority for approval under the guidance of the Central and State governments. A final decision will be taken only after receiving approval from the concerned authority.
The corporation is also exploring other measures to mitigate the impact, but Sarnaik emphasized that passenger fares may eventually need to be adjusted to reflect the increased operational costs.
