Bus fares to rise every two years, Karnataka government to set up regulatory panel

Periodic revision to offset rising costs without political consideration.

Bengaluru: Bus fares are set to be revised every two years as the state government has decided to form a Public Transport Fare Regulatory Committee (PTFRC) along the lines of the Karnataka Electricity Regulatory Commission (KERC).

The three-member committee, to be headed by a retired additional Chief Secretary or High Court judge, will study the financial conditions of the state's four Road Transport Corporations (RTCs) and suggest periodic fare revisions, surcharges and fees.

The committee will have a three-year term, meet at least every three months and submit an annual report to the government and RTCs for tabling in the legislature between April 1 and December 31 every year.

Transport Minister Ramalinga Reddy said fares would be revised every two years.

"We will revise the fares every two years, like how the KERC does with power tariffs. A small increase every two years will not burden the public much. Periodic revisions will help RTCs remain sustainable," he told DH.

Reddy noted that bus fares are often not revised due to political considerations. For instance, BMTC fares were revised in 2014 and then only in 2025. To facilitate the committee's formation, the Transport Department has notified a draft to insert Chapter 5A in the Karnataka Motor Vehicle Rules, 1989.

Objections or suggestions may be sent to the Transport Secretary (Room No 123, Ground Floor, MS Building, 3rd Gate, Bengaluru-560001) by October 8.Of the committee's two members, one will be a retired principal secretary/secretary with legal qualifications and the other an industry or financial expert.

The managing director of the Karnataka State Road Transport Corporation (KSRTC) will serve as the member-secretary, collating data from RTCs, being their voice in the committee, and managing the members' administrative needs, including their pay and perks. NGOs, public organisations and RTC unions may also make representations.

KSRTC MD Akram Pasha said the committee would factor in costs of diesel, spare parts, maintenance, bus purchase and salaries before recommending the fare hikes.

"Expenses keep increasing but the government doesn't allow us to hike fares. A period hike will set this right," he told this newspaper. While the committee will do its own calculations before recommending the hike, sources indicated that the revision would be 2-3 per cent, or up to 5 per cent.

After the final notification is published, the file will be sent to the transport secretary and the minister before being put up to the chief minister, who will nominate the members.

Pasha said the committee was likely to be in place by year-end, with offices likely at the BMTC complex in Shanthinagar. The KSRTC stressed said that without periodic fare adjustments, RTCs would face financial crises.

Karnataka's four RTCs revised their fares by 15per cent in January 2025. Before that, BMTC had revised fares in 2014 and other RTCs in 2020.

In 2014, the daily diesel expenditure was Rs 7 crore, which rose to Rs 13 crore by 2025. Similarly, daily staff costs increased from Rs 6 crore in 2014 to Rs 12 crore in 2025.

Namma Metro, which increased its fares by an average of 51.55 per cent in February 2025 after seven and a half years, will hike them by up to 5 per cent every year, starting February 2026. The government has also announced a more periodic increase in auto fares, which were hiked by 20 per cent on August 1.