Stage set for periodic bus fare hikes as Karnataka govt plans regulatory panel

Bengaluru: Paving the way for more frequent bus fare revisions, the Transport Department has notified the Karnataka Motor Vehicle (Amendment) Rules, 2025, to set up a Public Transport Fare Regulatory Committee (PTFRC) along the lines of the Karnataka Electricity Regulatory Commission (KERC). 

The department has inserted Chapter 5A in the Karnataka Motor Vehicle Rules, 1989. The final notification was issued in the gazette on October 24. 

The committee, 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. 

It will have a three-year term, meet at least once 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. 

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 before the committee and managing the members’ administrative needs, including their pay and perks. 

While the committee will do its own calculations before recommending the hike, sources indicated that the revision would be 2-3%, or up to 5%. It will consider costs of diesel, spare parts, maintenance, bus purchase and salaries before recommending the hikes.  The committee members are expected to be nominated by the chief minister by year-end. 

Transport Minister Ramalinga Reddy had told DH earlier that the fares would be revised every two years, much like how the KERC revises power tariffs. 

“A small increase every two years will not burden the public much. Periodic revisions will help RTCs remain sustainable,” he had said. 

Reddy noted that bus fares are often not revised due to political consiserations. For instance, BMTC fares were revised in 2014 and then only in 2025.