Thu Jan 02 16:11:58 UTC 2025: ## Karnataka Raises Bus Fares by 15% to Offset Rising Costs
**Bengaluru, January 2, 2025** – The Karnataka State Cabinet approved a 15% increase in bus fares across all four Road Transport Corporations (RTCs), effective January 5th. This move, aimed at addressing escalating operational costs, is expected to generate an additional ₹74.85 crore in monthly revenue for the RTCs.
The fare hike, the first in five years for most RTCs and a decade for the BMTC, comes in response to rising diesel prices, increased salaries, and higher maintenance expenses. According to Law and Parliamentary Affairs Minister H.K. Patil, daily diesel expenses have jumped from ₹9.16 crore to ₹13.21 crore, while daily staff expenses rose from ₹12.85 crore to ₹18.36 crore, resulting in an additional daily burden of ₹9.56 crore.
The government also allocated ₹5,015 crore in the 2024-25 Budget for the Shakti scheme, which provides free bus travel for women, and continues to release ₹417 crore monthly to the RTCs. Despite the increase, the Minister stated that Karnataka’s bus fares will remain lower than those in neighboring states like Andhra Pradesh, Telangana, and Maharashtra.
The fare hike addresses one of the two key demands of RTC employees, who had threatened a strike before the government intervened with assurances. Additionally, the government will guarantee a ₹2,000-crore loan for the RTCs to clear outstanding provident fund and diesel dues, covering both principal and interest.
First Piper 