MSRTC faces Rs 125 crore burden due to diesel price spike, Minister hints at potential fare hike

Mumbai, May 15 The Maharashtra State Road Transport Corporation (MSRTC), popularly known as the 'Lal Pari', is facing a fresh financial crisis following a recent spike in fuel prices.

Maharashtra Transport Minister and MSRTC Chairman, Pratap Sarnaik, on Friday, indicated that the corporation may be forced to hike ticket fares to offset an estimated annual burden of approximately Rs 125 crore.

The minister’s statement comes after the central government on Friday 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 has immediate and severe consequences.

According to the minister, the price hike translates to an additional daily expenditure of several lakhs, totalling an annual burden of roughly Rs 124 to Rs 125 crore. This comes at a time when the corporation is already struggling with an accumulated loss of nearly Rs 12,000 crore.

Speaking to the media, Minister Sarnaik highlighted the delicate balancing act the state government is currently performing.

“The rise in petrol and diesel prices hits our operational costs directly," Sarnaik stated. "While we have not implemented a fare hike yet, we may have to consider it in the future. The corporation cannot continue to absorb such massive losses indefinitely,” he added.

The Minister further explained that while the government provides various subsidies and financial support to MSRTC, the global fuel market—influenced by geopolitical tensions—has made it difficult to maintain current pricing. To prevent a steep hike for the common man, Minister Sarnaik outlined several measures being taken to boost non-ticket revenue.

“MSRTC is setting up over 100 multi-modal fuel stations (petrol, diesel, CNG, and EV charging) under a Public-Private Partnership (PPP) model to generate Rs 100 crore annually. The corporation is accelerating the shift to electric buses.

Sarnaik noted that MSRTC charging stations will eventually be opened for private vehicles to generate additional income. “A new ambitious plan aims to earn over Rs 250 crore over the next five years through advertisements on buses and at stands,” he said.

Parallel to the Minister's hint at a fare hike, transport unions and the MSRTC Employees Congress have urged the state government to follow the "Rajasthan Model." They have proposed that the Maharashtra government should reduce the Value Added Tax (VAT) on diesel specifically for MSRTC buses—similar to Rajasthan, which lowered VAT from 18.5% to 14% for its state transport—to provide relief without passing the burden onto passengers.

In a related move to protect commuters, Minister Sarnaik also announced the formation of a special committee to curb "illegal and exorbitant" fare hikes by private bus operators during holiday seasons. He warned that strict action would be taken against unauthorised booking apps that exploit passengers.

A senior union leader said that for now, millions of daily commuters in Maharashtra wait with bated breath to see if the "Lal Pari" will remain an affordable lifeline or if the rising cost of fuel will finally reflect in their ticket prices.

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