Though the minimum fare for ordinary buses has been left untouched, the fare will increase from the second stage to the tune of 2.5 paise per kilometre for ordinary buses, 5 paise for express services and 7 paise for deluxe buses. Excepting a few stages, rise in fares will range from 6 to 10 per cent.

Declaring the fare hike today, the general manager of MSRTC Ashok Khot said the corporation had been forced to take the decision because of increase in prices of essential items like diesel, tyres and tubes and spare parts this year. The increase will come into effect after the corporation gets permission from the State Transport Authority.

Khot claimed the increase in prices of essential items had created a deficit of nearly Rs 190 crore for the corporation. Thisdeficit is likely to be set right partially through the Rs 153 crore revenue expected from increase in fares. However, with an increase in sales tax for petrol and diesel from today, an additional burden of Rs 7 crore is likely to be put on the corporation.

Interestingly, the state government has authorised MSRTC to vary the fares on various sectors depending upon the season for a year. This is likely to bring in more competition in the transport sector, with the corporation now fighting with private operators on their own turf. Till now, private operators used to decrease prices during off-season, thereby weaning away passengers.