Karnataka Increases State-Run Bus Fares by up to 35% Citing Operating Losses

BENGALURU — Karnataka has announced an increase in bus fares across its four state-run transport corporations, with the revised rates set to take effect from November 5. The fare hikes range between 23 and 35 percent.

The adjustments apply to the Karnataka State Road Transport Corporation (KSRTC), Bengaluru Metropolitan Transport Corporation (BMTC), North Western Karnataka Road Transport Corporation (NWKRTC), and Kalyana Karnataka Road Transport Corporation (KKRTC). Specifically, KSRTC fares have been raised by 23 percent, while BMTC fares have gone up by 33 to 35 percent.

In Bengaluru, the minimum BMTC fare has increased from ₹6 to ₹10, and the maximum fare has risen from ₹35 to ₹45. This fare revision follows the state's decision a week prior to raise Nandini milk prices by ₹8 per litre, presenting an additional cost increase for consumers.

Transport Minister Byrathi Suresh stated that the transport corporations had initially sought fare increases of up to 90 percent. However, the government chose a moderate revision to limit the financial impact on passengers. According to the Minister, the four corporations are incurring losses of approximately ₹2,000 crore due to mounting costs related to fuel, vehicle maintenance, repairs, and employee wage revisions.

Suresh noted that fares had previously been revised only once in the past 11 years. He also stated that the Shakti scheme, which provides free bus travel to eligible women, has not caused financial difficulties for the corporations because the state government fully reimburses the fares covered under the scheme.

Although a committee recommended a substantial fare increase, implementing the entire recommendation at once was avoided to prevent a heavy burden on passengers, Suresh explained. He added that Karnataka’s bus fares remain lower than those in neighboring states.

Responding to critics of the hike, the Karnataka Chief Minister suggested that critics should instead urge the central government to reduce fuel prices, stating that lower petrol and diesel prices would enable the state to reduce ticket prices.

"State-run transport utilities often face acute financial strain when operating costs like fuel and wages outpace revenue generation, especially when fares remain unchanged over long periods. While fare hikes are difficult for consumers—particularly when compounded by other essential price increases—they are frequently necessary to offset mounting operational losses. Managing public utilities requires a delicate balance between fiscal sustainability and consumer affordability, particularly in government-subsidized public transport ecosystems." — Dr. Shishir Gupta, Founder & CEO, StartupLanes