APSRTC May Hike Fares Soon

The Andhra Pradesh State Road Transport Corporation (APSRTC) has reportedly requested the government to allow it to hike fares in the event of an increase in diesel prices.

The RTC authorities explained that if diesel prices are hiked as a result of the escalating crude oil prices, the RTC would have to shoulder the expenditure of an additional Rs. 350 crores per month on fuel.

The APSRTC, an organization that holds a place in the Guinness Book Of World Records for being the world's largest bus operator, has been running in losses for quite some time now. The organisation had to take loans to pay its thousands of employees in April 2011.

The ledgers of the company are rumoured to show that its debts amount to Rs. 1,600 crores.

The RTC officials lament that upto 58% of the revenue generated every month is spentnof fuel, and that with the addition of the salaries to be paid and maintenance costs, the revenue vaporises.

Private transport companies are giving the APSRTC a run for its money. The occupancy ratio of the RTC has declined with the introduction of transportation services by private organisations, and consequently, the RTC ran further into losses.

The people of the state may expect a hike in RTC fares as soon as diesel prices are hiked by the fuel companies.