The Maharashtra State Road Transport Corporation (MSRTC), also known as the ‘Lal Pari,’ is encountering a new financial challenge due to a recent increase in fuel costs. Maharashtra Transport Minister and MSRTC Chairman, Pratap Sarnaik, suggested that the corporation might need to raise ticket prices to offset an expected yearly burden of around Rs 125 crore.
Following the central government’s hike in petrol and diesel prices by Rs 3 per liter, Minister Sarnaik highlighted the immediate and severe impact on MSRTC, which operates extensively with 251 depots and consumes about 11 lakh liters of diesel daily. This price adjustment is estimated to result in additional daily expenses amounting to several lakhs, leading to an annual burden of approximately Rs 124 to Rs 125 crore.
Minister Sarnaik emphasized the challenges faced by the state government in managing operational costs directly affected by the rise in fuel prices. While no fare increase has been implemented yet, he acknowledged the possibility of such a step in the future due to the corporation’s inability to sustain substantial losses indefinitely.
To address the financial strain, MSRTC is exploring various measures to enhance non-ticket revenue, including establishing over 100 multi-modal fuel stations and accelerating the transition to electric buses. Additionally, plans are in place to generate income through advertisements on buses and at stands, aiming to earn over Rs 250 crore in the next five years.
