Bulk diesel price hike forces RTCs to reform
APSRTC’s annual expenditure on diesel was estimated at Rs 3,260 crore before the price hike. As part of increasing revenues, it plans to maintain punctuality in running its services to lure passengers and increase the occupancy ratio to 78% from the existing 74%. A 1 percentage point increase in the occupancy ratio will boost revenue by Rs 60 crore.
Stating that deregulation of bulk diesel prices has hit the corporation hard, UP State Road Transport Corporation managing director Alok Kumar said that there is an urgent need to prioritise public transport.
“We are finding it difficult to meet the costs in the present fare structure. What we need to do immediately is to automatically pass through the fuel cost.”
He added that the corporation, on average, has a monthly expenditure of Rs 250 crore, while its average income is Rs 220 crore. UPSTC is deep in the red and faces difficulty even in paying wages. It
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