Karnataka announces 15% hike in bus fares from January 5

The decision will apply to all four Road Transport Corporations in the state.

Bengaluru: From January 4 midnight, passengers of all government-run buses in Karnataka will have to pay 15 per cent more. 

On Thursday, the state cabinet granted administrative approval for the fare hike, which will apply to all bus (city, ordinary, express, and deluxe/premium) services across the four Road Transport Corporations (RTCs) in Karnataka: KSRTC, NWKRTC, KKRTC and BMTC. 

This is the first hike for the KSRTC, the NWKRTC and the KKRTC since February 26, 2020, where fares were increased by 12 per cent.

BMTC fares were last increased by 17 per cent on April 25, 2014, but saw a 2 per cent reduction a year later. 

The fare is expected to be rounded off to the next number. For example, the BMTC's current base fare of Rs 5 will increase to Rs 6. Other RTCs will deploy a similar fare mechanism for their city bus services. For long-distance travel, the hike will remain within the 15% cap. 

Briefing reporters after the cabinet meeting, Law and Parliamentary Affairs Minister HK Patil insisted that the fare hike was essential to address the financial challenges faced by the RTCs. 

"(Our) discussion considered a fare hike between 13 per cent and 15 per cent. We decided on 15 per cent after looking at the fares prevailing in Telangana, Andhra Pradesh and Maharashtra," he said. 

While he stated that the fare hike would bring an additional revenue of Rs 74.85 crore per month to the RTCs, bus ticket prices in Karnataka would still be lower those in Andhra Pradesh, Telangana and Maharashtra. 

According to him, the total revenue of the four RTCs from April to November in 2024 stood at 8,418.46 crore while their expenditure was 9,511.41 crore, resulting in a net deficit of Rs 1,092.95 crore. 

Diesel costs and staff salaries form 90% of the expenditure. Since the last fare hike in 2020, the total daily cost on diesel has increased from Rs 9.16 crore to Rs 13.21 crore. Similarly, staff salary costs have shot up from Rs 12.85 crore per day to Rs 18.36 crore. As a result, the four RTCs have been incurring an additional financial burden of Rs 9.56 crore per day, Patil explained. 

The RTCs' total financial liabilities stood at 6,520.14 crore on December 31, 2024. 

A senior official in the KSRTC said that the new fares were being worked out and a clear picture would emerge in the next two days. 

The fare hike will significantly raise the Congress government's expenditure on the Shakti scheme, which allows free travel on non-premium buses for women of Karnataka domicile. 

Patil affirmed that the scheme would continue and that the government would provide the RTCs' with the necessary support to sustain it. 

"To ensure social welfare, some sections have to bear more burden," he said. 

With the fare hike, the government has addressed a key concern of the RTCs, who face a staff strike over a long-pending pay raise. 

Chief Minister Siddaramaiah has promised to hold a meeting with the employees' unions after Sankranti to address the demand.

Stats

Karnataka RTCs

No of buses: 25,337

Daily services: 23,038

Average daily ridership: 1.16 crore

Shakti scheme beneficiaries: 64 lakhs

Employees: 1,01,648

Total revenue (April to Nov 2024): Rs 8,418.46 cr

Total expenditure (April to Nov 2024): Rs 9,511.41 cr

Net deficit: Rs 1,092.95 crore

Since the last fare hike, diesel and staff costs have increased by Rs 9.56 cr, from Rs 22.01 crore to Rs 31.57 cr.

RTCs' total financial liability (as of Dec 31, 2024): Rs 6,520.14 cr

15% fare will bring an additional Rs 74.85 cr per month

Shakti scheme

Cost (April to Nov 2024): Rs 3,951.11 cr

Govt reimbursement: Rs 3,343.33 cr

Budget allocation: Rs 5,105 cr

Monthly reimbursement: Rs 417.92 cr

Total fare revenue: Rs 7,948.27 cr

Non-Shakti fare revenue: Rs 3,997.16 cr