Diesel price hike drives KSRTC to doom

Thiruvananthapuram: The present diesel price hike has driven the State Road Transport Corporation (KSRTC) into deeper trouble as it would result in an extra expense of Rs 11.50 per litre for the public utility – requiring an additional Rs  50 lakh a day.
This was because oil companies included it in the list of bulk consumers. As per the new rules, bulk customers have to pay a market price of ` 60.25 per litre.
Earlier, the KSRTC was in the list of retail consumers. On an average, it needed 4.5 lakh litres of diesel a day. This meant that the diesel cost for the public utility a year would come to around ` 181 crore.
This additional burden may force the KSRTC to go for another bus charge hike, ultimately affecting the customers.
Chief minister Oommen Chandy said the state government would ask the Centre to exclude KSRTC from the list of bulk customers. The new decision would not only affect the KSRTC but also the railways, he said.
The KSRTC, which has a fleet of 6,153 buses on an average, operated 5,491 schedules. The corporation also has a staff strength of 40,180.