Kohar reacts to debate in media about bus fares not being slashed despite decrease in rates of diesel

Author(s): Punjab News Desk @ city air newsChandigarh, October 28, 2014: There has been a debate going on in the media circles about the bus fares not being slashed despite decrease in the rates of diesel. It is said that before increasing...

Kohar reacts to debate in media about bus fares not being slashed despite decrease in rates of diesel

Chandigarh, October 28, 2014: There has been a debate going on in the media circles about the bus fares not being slashed despite decrease in the rates of diesel. It is said that before increasing the bus fare, the price of diesel and other miscellaneous expenses were computed and the per kilometer expenses then worked out were made the basis of fixing the fare. According to this system the fare was increased only when government and private operators were incurring great losses due to increase in the prices of diesel. In this system the fare was not increased for many years. The Government of India recently increased the prices of diesel due to which government and private bus operators suffered huge losses and there was pressure to increase the fare so as to make good the losses incurred by the government.
Stating this, Ajit Singh Kohar Transport Minister, Punjab said that keeping in view these circumstances the Government issued a notification on August 8, 2013 which proposed a formula about increasing the fare. The formula stated that the fare will increase/decrease by 0.40 percent for every percentage point increase/decrease in the price of diesel as well as increase in the rate of motor vehicle tax. The revision will be effected on quarterly basis on 1st April, 1ST July, 1st October and 1st January.
The Minister stated that as per the above formula increase/decrease in the fare of buses should be effected from 1st April, 1ST July, 1st October and 1stJanuary. But the rates of diesel have been slashed from 18th October 2014. After the previous increase in fare, rates of diesel are up by 2.63 rupees and the loss in the price of diesel has been 3.37 rupees and the difference is 74 paise. According to the formula it’s impact should take effect from 1st January. So, the prices of diesel prevalent at that time should determine the increase / decrease in fare.If the Government of India doesn’t effects any changes in the prices of diesel then in that case decrease in fare can be considered according to per kilometer formula. In case of diesel there not being any increase/decrease in diesel prices then the fare will be less by 0.48 paise per kilometer.
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Date: 
Tuesday, October 28, 2014