Karnataka Will Cut Bus Fares If Centre Trims Diesel Price, Says Deputy CM Shivakumar
Karnataka Deputy Chief Minister D.K. Shivakumar on Wednesday defended the recent revision of state bus fares, saying the increase had been necessitated by higher diesel prices, and said the State government was willing to reduce fares proportionately if the Union government brought diesel prices down.
Speaking to reporters in Bengaluru, Mr. Shivakumar said the State-owned road transport corporations (RTCs) were under financial strain. "The State-owned road transport corporations are facing losses. About three weeks ago, the State government had to intervene when the RTCs did not have money to purchase diesel. The government gave the money," he said. The remarks came in response to the State-wide protest announced by Opposition parties for Thursday against the fare hike.
The Deputy Chief Minister said the corporations were under severe financial stress, and referred to the Shakti scheme — one of the five guarantee programmes of the Congress government — which allows free bus travel for women across Karnataka. "That is why ₹2 to ₹3 may have increased for every stage," he said.
Turning the question back on the Opposition, Mr. Shivakumar asked why it had not protested when fuel prices were revised. "Why did the Opposition not raise its voice when the cost of diesel and petrol was revised? Why were they silent when the cost of domestic LPG, pesticides, cement, iron and fertilizers went up? Is the Opposition not bothered about the increase in the cost of agricultural implements?" he said.
The fare revision has drawn criticism from commuter groups and Opposition parties, who have announced a State-wide protest on Thursday. The government has argued that without the revision, the transport corporations would be unable to maintain services.
Fuel pricing is a shared responsibility between the Union and State governments. While retail prices of diesel and petrol are set by oil marketing companies and are influenced by global crude oil rates, central excise duty and State-level taxes such as value-added tax, the Union government controls excise duty and the States control VAT. Any reduction in retail diesel prices would therefore depend on decisions taken at either level, or on movements in international crude prices.
On the concerns raised by farmers in a drought year, Mr. Shivakumar said he was aware of their difficulties. "I am aware of the plight of farmers during the drought year and their livelihood concerns. Transport corporations should survive. Opportunity should be given for them to recover financially," he said.
The State government has not indicated a timeline for a review of fares, and any reduction would depend on a decision by the Union government on diesel prices. The transport corporations are expected to present their financial position to the State government in the coming weeks.
