KSRTC trips on fuel bill woes

Nischith N. | NT

The rising global crude prices have landed the Karnataka State Road Transport Corporation (KSRTC) in dire straits. KSRTC officials claim they are ‘facing its biggest challenge in recent days,’ and are exploring several options to keep their fuel bill low.

Oil Marketing Companies had on March 21 raised the price of diesel pur - chased by b u l k industrial buyers by Rs 25 per litre, on the back of high crude oil prices. Bulk buyers, including factories, transport fleets and shopping malls, purchase fuel directly from oil marketing companies. They had then left the retail diesel prices untouched, which was later gradually increased on a daily basis along with petrol. However, even now the price difference between bulk diesel and retail diesel remains substantial.

The KSRTC runs more than 8,000 plus diesel buses, and most of them line up at the retail fuel outlets, where the cost of diesel is low.

“Diesel prices in India have been increased by about Rs 25 per litre for bulk customers, as international oil prices jumped nearly 40 per cent amid the on-going Russia-Ukraine war. However, the retail price of diesel remains unchanged. There are thousands of diesel buses in the corporation. So, for reasons of fuel economy, the KSRTC has decided to send its buses to fuel stations across the city and suburbs for refuelling. It is the best way to save some money. because we all know that KSRTC and other public transport departments are incurring losses,” a KSRTC senior official said.

According to the reports, authorities maintain that refuelling at general petrol stations has not affected the KSRTC schedules across Karnataka, but the drivers are complaining that their working hours have increased.

Authorities concede that the new mode of refuelling is more time consuming.

As per the new direction, the KSRTC buses now go to fuel stations for refuelling; this way they save additional Rs 14 a litre they have been asked to pay by oil marketing companies. The additional charges are applicable only to bulk consumers. Following the Union Government’s decision, the cost of diesel at KSRTC depots are Rs 107 a litre as against Rs 94 charged at private outlets.

“Buses have been refuelling at petrol stations since Monday. On an average across the state KSRTC division required 503 KL of diesel a day, of which Bengaluru division needed higher. The refuelling was being done at the nearest petrol stations to the depots.

It is claimed that so far, there has not been any disruption in service because of the new arrangement as buses were being given priority during refuelling at petrol stations.

But the drivers said the new ar rangement was time consuming. “I have to wait nearly two hours to refuel at bunks. This increases our working hours,” said the driver of a Tumakuru bound bus. Another Mysurubound bus driver was waiting for his turn at the petrol station.

“We have asked the drivers to get into a private petrol bunk to fill the tank because it is cheaper compared to our bulk. We have asked the government to consider this issue because KSRTC is running under losses” says a KSRTC senior official.

According to the reports, the tender for supplying diesel to KSRTC and BMTC buses is executed by HPCL. The oil marketing company has tied up with MRPL for supply to these two transport corporations. The company will be supplying around 50,000 kilolitres of diesel per month to these two corporations.

The KSRTC had incurred huge losses during the Covid-19 pandemic as it had to curtail its services due to lockdowns and other curbs in the movement of people. Prior to the pandemic, KSRTC was named for the best public transport in the country for its services and its premium services were top-notch. The pandemic adversely affected its fleet of 530-odd premium buses. It runs only 330 buses after the Covid curbs were lifted, as it is finding it difficult to meet the running costs.

The government had recently formed a committee, headed by retired Additional Chief Secretary M R Srinivasa Murthy, to restructure transport corporations. Taking a cue for the neighbouring state, the KSRTC Staff and