Fuel price rise: Transport utilities take a hit

By Nitindra Bandyopadhyay

Corporations are having to undergo an additional Rs nine.29 crore towards fuel charges

The rising oil price upward push has no longer handiest impacted the day-to-day shoppers, however the State Transport utilities are bleeding because of the day-to-day price correction in oil prices, which has been on an upward surge since December. In the closing 15 days since April 16, the road shipping corporations are struggling to regulate their price range as they had to undergo an additional monetary burden of Rs nine.29 crore towards fuel charges.

The information of the previous one month presentations that the Karnataka Road Transport Corporation is the worst hit because of a monetary variation and an added enter of `three.eight crore per thirty days on top velocity diesel (HSD) that it buys in bulk.

The recent hike in prices has handiest accentuated the issue.

A senior respectable of the KSRTC mentioned, “We have written to the state govt about the problem as it is not handiest the day-to-day price correction that is impacting us, but in addition the increase in bulk rate of HSD, which has been increasing at a higher rate when in comparison to its retail promoting charges. We have requested for a route correction as it's impacting our monetary operation.”

The Bangalore Metropolitan Transport Corporation is having a rough time in the case of losses. The company has already confronted a nasty monetary 12 months in the case of 2016-17, however since November 2017, their losses have started mounting because of HSD price correction since December.

The BMTC that requires around about 324 kilo-litres of HSD every day has already confronted an additional spending of `1.95 crore since April 16. A senior respectable of the finance division mentioned that in addition to this, the state shipping company is also going through losses on routes that fall along the Metro’s Phase-1.

The airport fleet is also going through losses regardless of decreasing its prices as the competition from private taxi aggregators is top and the toll free hall has handiest added to its woes.