Thiruvananthapuram: The Kerala State Road Transport Corporation (KSRTC) is planning for a fare hike in view of the recent spike in diesel price, which caused an extra burden to the transport corporation.
The KSRTC claims that a fare hike is inevitable, if the services of loss-making 1,672 buses are not suspended. Finding it difficult to operate with the crisis, the KSRTC management has decided to submit its recommendations to Transport Minister Aryadan Muhammed.
According to sources in KSRTC, the current round of hike in diesel price for bulk users would cast an additional burden of Rs 180 crore on it by modest estimate, forcing it to choose between hard options like cutting down services or effecting a steep fare hike.
The Centre's decision to allow oil companies to deregulate diesel prices for bulk purchasers has dealt a blow to the Kerala State Road Transport Corporation forcing the loss-making public utility to drastically cut its services across the state.
Though Chief Minister Oommen Chandy had already written to Prime Minister Manmohan Singh about the need to reconsider the decision to deregulate diesel prices for bulk users, the Centre is yet to respond to the state's plea.