Panaji: The state-run Kadamba Transport Corporation (KTC) has incurred an additional fuel expenditure of nearly Rs 60 lakh per month following a sharp rise in diesel prices amid ongoing geopolitical tensions in West Asia. Despite the increase in operating costs, KTC has so far ruled out a fare hike.
The corporation operates a fleet of around 630 vehicles, including 173 electric vehicles and 460 diesel-powered buses, which have been directly affected by the fuel price increase.
“Diesel prices remained stable between Rs 82 and Rs 84 per litre for a long period. However, over the past few weeks, they have gradually risen to around Rs 95 per litre,” KTC chairman Ulhas Tuenkar told TOI.
KTC consumes about 4.5 lakh litres of diesel every month, with daily consumption averaging 15,000 litres. Fuel usage increases during peak travel seasons such as summer vacations, Diwali and Christmas, when interstate services operate more frequently.
“Every Re 1 increase in diesel prices adds roughly Rs 4.5 lakh to our monthly fuel bill. With diesel prices in Goa rising by nearly Rs 13 per litre since the outbreak of the West Asia conflict, our monthly fuel expenditure has increased by about Rs 58.5 lakh, which we have rounded off to nearly Rs 60 lakh,” Tuenkar said.
KTC finance controller Kedar Pai said the corporation’s monthly diesel expenditure was around Rs 3.7 crore to Rs 3.8 crore before the latest price hike.
“The additional expenditure of Rs 60 lakh has put further pressure on the corporation’s finances at a time when we are already dependent on government support to bridge operational deficits,” Pai said.
Despite the mounting fuel costs, KTC has no plans to curtail services or increase fares.
“Fuel prices continue to rise, but there are no immediate plans to revise passenger fares,” KTC general manager Mahendra Pednekar said.
“We continue to follow the fare structure that was last revised in 2019, and fares remain unchanged. Any additional financial burden resulting from higher fuel prices will be addressed by the government. We are closely monitoring the situation as uncertainty in global energy markets persists due to the ongoing conflict in West Asia,” he added.
