Karnataka RTCs face heavy losses from fuel price hike, government seeks report
Amid speculation about a possible revision of bus fares in state-run road transport corporations (RTCs) following an increase in diesel and other petroleum product prices, the Karnataka government has directed the Transport Department to submit a comprehensive report on the financial losses incurred by these corporations.
According to Chief Minister D.K. Shivakumar, the RTCs have been severely affected by the rise in fuel prices, which has been exacerbated by the ongoing conflict in West Asia. Additionally, the corporations have faced revenue pressures over the past three years since the implementation of the Shakti scheme, one of the state's five guarantee programmes, which provides free travel for women.
Speaking after a cabinet meeting, Shivakumar stated, 'The RTCs are suffering huge losses due to the hike in diesel prices. We also need to take care of the employees.' The government has not yet indicated whether bus fares will be revised, but the report is expected to provide a clearer picture of the financial situation.
The development comes at a time when the RTCs are already under financial strain, with rising operational costs and increased demand for services under the Shakti scheme. The government is expected to review the report and consider possible measures to address the losses, including fare adjustments or additional subsidies.
