Kochi: The rise in diesel prices post increase in fuel taxes by the Centre has started taking its toll on financially-struggling Kerala State Road Transport Corporation (KSRTC).
The Centre hiked infrastructure cess on auto fuels by Rs two during the budget announcement on Friday which resulted in diesel prices shooting up by Rs 2.50 to touch Rs 71.68 per litre in Thiruvananthapuram.
The KSRTC will be now forced to spend an additional Rs three crore every month towards fuel expense, further burdening the corporation which is finding it difficult to pay monthly salary to its 36, 000 employees.
"The daily fuel consumption comes to Rs 4.5 lakh litre which means we'll have to pay an additional Rs 11.25 lakh per day for purchase of diesel. We'll have to source funds to meet the additional Rs 3.5 crore monthly fuel expense," said a senior KSRTC official.
The corporation will also have to take into account the rise in price of engine oil and brake fluids among others.
The KSRTC currently incurs an expenditure of Rs 3.12 crore on fuel daily. With an average daily collection of Rs six crore, the corporation spends nearly 50 per cent of its revenue on fuel purchases.
Meanwhile, the state is unlikely to get major allocation in the budget which focused on PPP (Public-Private Partnership) investment in development of infrastructure."We're yet to receive the details of fund allocation to the division. We're promised that funds would be set aside to complete the doubling works," said a senior divisional official....