Mumbai, May 16: The Maharashtra State Road Transport Corporation (MSRTC) is facing a new financial crisis due to a recent spike in fuel prices.
Maharashtra’s Transport Minister and MSRTC Chairman, Pratap Sarnaik, indicated on Friday that the corporation might be compelled to increase ticket fares to cover an estimated annual burden of around ₹125 crores.
This statement follows the central government’s announcement of a ₹3 per liter hike in petrol and diesel prices.
Operating a vast fleet of vehicles across 251 depots and consuming nearly 11 lakh liters of diesel daily, MSRTC will experience immediate and severe consequences from this price adjustment.
According to the minister, the price increase will lead to an additional daily expenditure of millions, pushing the total annual burden to approximately ₹124 to ₹125 crores. This comes at a time when the corporation is already grappling with accumulated losses nearing ₹12,000 crores.
Speaking to the media, Minister Sarnaik highlighted the delicate balance the state government is currently maintaining.
He stated that the rise in petrol and diesel prices directly impacts operational costs. While fares have not yet been raised, he acknowledged that future considerations may be necessary. The corporation cannot sustain such significant losses indefinitely.
The minister further explained that the government provides various subsidies and financial assistance to MSRTC. However, maintaining current prices has become challenging due to geopolitical tensions affecting global fuel markets. To mitigate the burden on the common man, Sarnaik outlined several measures aimed at increasing non-fare revenue.
MSRTC is establishing over 100 multi-modal fuel stations (petrol, diesel, CNG, and EV charging) under a public-private partnership (PPP) model, which is expected to generate an annual revenue of ₹100 crores. The corporation is also accelerating its transition to electric buses.
Sarnaik noted that to generate additional income, MSRTC charging stations will eventually be opened to private vehicles. He mentioned a new ambitious plan aimed at earning over ₹250 crores in the next five years through advertising on buses and at bus stands.
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