Punjab increases bus fares by 23 paise per km, expects additional Rs 150 crore revenue

The Punjab Transport Department has increased bus fares by 23 paise per km, effective Saturday, which is expected to generate an additional revenue of Rs 150 crore for the state. However, this move will also increase the financial burden on the state bus undertaking, which offers free bus travel to women, with reimbursement claims expected to rise by nearly Rs 50 crore annually.

Transport Secretary Dilraj Singh in a notification issued today said the fare of ordinary buses has been increased by 23 paise per km while for ordinary HVAC (heating, ventilation, and air conditioning) buses, it has been increased by 28 paise per km. For integral coaches, the fare has been increased by 41 paise per km and for super integral coaches, there is an increase by 46 paise per km.

This decision comes two days after the state increased value-added tax (VAT) on petrol and diesel prices by 61 paise and 92 paise per litre, respectively, and withdrew the Rs 3 per unit power subsidy for consumers with loads up to 7 kW.

According to JS Grewal of Small Bus Operators Association, the fare hike will not significantly benefit buses operating on routes shorter than 50 km. He suggested that the state should reduce the motor vehicle tax instead.

Officials from Pepsu Road Transport Corporation (PRTC) noted that the fare increase will provide some relief from rising diesel costs, but it will also put an additional burden on State Road Transport Undertakings that are reimbursed by the state for free bus travel availed by women. The reimbursement is often delayed by the state.