The Andhra Pradesh Government has played down the impact of increase in bus fares. “It is not going to impact the majority of the bus passengers. We have increased fares of luxury services only,” Botcha Satyanarayana, Minister for Transport, said.
Addressing a press conference here on Monday, he said more than half of the 1.30 crore bus passengers ply on ‘Palle Velugu’ services in rural areas. “These services cover distances in the range of 1-50 km. Up to 25 km, the fares are up by Re 1 and Rs 2 more for travel up to 45 km,” he said.
The accumulated losses of Andhra Pradesh State Road Transport Corporation stood at Rs 2,682 crore. “This year, we are expecting losses to the tune of Rs 800 crore due to diesel price hike and other issues,” he said.
The corporation had increased bus fares following the steep rise in diesel prices last week. The impact was very high on long-distance services that went up by about Rs 60 crore in some cases.
The Minister said the Corporation was proposing to introduce ‘flexi’ fares, revising the fares of luxury services downwards in off peak season. On the issue of VAT on diesel, he said he had directed officials to put up a file discussing the likely benefits for the corporation and passengers if VAT was removed.