Mumbai, May 18 (IANS) Transport Minister and Maharashtra State Road Transport Corporation (MSRTC) Chairman, Pratap Sarnaik, on Monday said that State Transport (ST) buses remain an essential public transit service for citizens in rural areas, and maintaining this service while ensuring financial stability is a key challenge ahead for the corporation.

Against the backdrop of rising fuel costs, a proposal for a passenger fare hike is under consideration; however, fares will not be increased immediately.

Following a hike in diesel prices, Minister Sarnaik today chaired a high-level meeting with senior MSRTC officials.

Speaking at the meeting, Minister Sarnaik stated that the recent surge in diesel prices will inflict an additional annual financial burden of approximately Rs 124 crore on the corporation.

The MSRTC requires an average of 10.87 lakh litres of diesel daily. Currently supplied by the Indian Oil Corporation (IOC), the price of diesel has jumped from Rs 88.21 per litres last week to Rs 91.31 per litres —marking an increase of Rs 3.10 per litre. Due to this price hike, the MSRTC is bearing an extra daily expense of roughly Rs 33.70 lakh. This cumulative burden scales up to nearly Rs 10 crore per month and is projected to hit around Rs 124 to Rs 125 crore annually, the Minister added.

The Minister further explained that the MSRTC is already grappling with financial difficulties, noting that the corporation suffered a loss of approximately Rs 76 crore in the month of April 2026 alone. The escalating fuel costs are directly impacting the corporation’s financial health, making a passenger fare hike highly probable in the future.

However, Minister Sarnaik clarified that no fare hike will be implemented instantly. Following proper guidelines from the Central and State Governments regarding fuel price increases, a formal fare hike proposal will be submitted to the State Transport Authority for approval. A final decision will only be implemented after receiving the relevant authority’s sanction. Further, the government is exploring various alternatives to minimise the financial burden on commuters.

Minister Sarnaik said that special focus is being placed on fuel conservation, the expanded deployment of e-buses, cost-containment measures, and strategies to boost overall revenue.

Earlier on Friday, Minister Sarnaik indicated that the corporation may be forced to hike ticket fares to offset an estimated annual burden of approximately Rs 124 to Rs 125 crore.

The Minister made a statement after the central government increased the prices of petrol and diesel by Rs 3 per litre. For MSRTC, which operates a massive fleet across 251 depots and consumes nearly 11 lakh litres of diesel daily, this price adjustment had immediate and severe consequences.

According to the minister, this comes at a time when the corporation is already struggling with an accumulated loss of nearly Rs 12,000 crore.

–IANS

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