Bangalore: Karnataka State Road Transport Corporation on Saturday announced a 10.50 per cent hike in bus fares to mop up an additional Rs 186.72 crore annually, citing the mounting financial burden imposed by hike in diesel prices.
In tandem, Bangalore Metropolitan Transport Corporation also announced a modest fare hike ranging from Re 1 to Rs 3.
The hike would come into affect from midnight, KSRTC and BMTC said in separate statements.
KSRTC said the financial burden on the Corporation due to fuel price hike will be Rs.120.10 crore per annum.
Besides, as per the fare revision formula approved by government, the dearness allowance increase to employees had also been factored in for fare revision.
North-West Karnataka Road Transport Corporation and North-East Karnataka Road Transport Corporations are also revising bus passenger fares with immediate effect in the same proportion, it said.
With this fare increase, additional revenue mobilization expected per annum is Rs 186.72 crore and the additional cost is Rs 222.68 crore, leaving a deficit of Rs 35.96 crore per annum.
BMTC also said the frequent hike in the High Speed Diesel price since January 18 and release of DA and HRA to the employees has resulted in severe financial burden.
The increase will be from Rs 1 to Rs 3 for ordinary services and apply to all categories of "Non-AC services" only, it said.