The price of diesel is on the rise now and this is creating many problems. This increase in the fuel prices has forced many transport corporations in the state of Tamil Nadu to cut the bus services. It is now revealed that since the month of January more than 1000 mofussil and town bus services have been cut by these transport corporations in districts present outside Chennai. This was confirmed by an official data. The fuel rates are rising and the transport corporations are spending extra Rs 80 crores to Rs 100 crores per month. In addition to this the transport corporations have to contend with the state government’s diesel subsidy also.
In the past 6 years the government had spent a total amount of Rs 2990 crores on subsidy and this was confirmed in the policy note of transport department. As per the officials and workers it is clear that transport corporations are finding it difficult to manage the operations of bus services without subsidy and the subsidy was provided by the state till the month of January. This was done mainly to offset the increase in the fuel prices. In January, the government made many heads turn when it increased the bus fares to 60 percent. It is important for the transport corporations to balance their finances while accounting for the hike in diesel prices. After the slash in the bus services, there were fewer buses on the roads and this had resulted in the reduced fuel consumption by 2lakh litres per day.
One important point is the prices of the diesel increased to Rs 16 per litre in this time period and this had forced the transport corporations to spend up to Rs 100 crores in excess. The diesel contributes to 27% of the total expenditure of the transport corporations.
The records showed the efficiency of TNSTC drivers as they recorded 5km or more per litre whereas the private drivers were struggling to achieve a mileage of 4km per litre. This caught the attention and as a result of that the TNSTC drivers and bus crews recently received awards from the centre for fuel efficiency and productivity of the vehicle.
According to Mr. Arumugam Nainar of CITU affiliated state transport corporation, loss limiting measures at the diesel pumps at the filling stations were implemented by the staffs. The staffs also readjusted the throttle settings in the buses. This has resulted in the TNSTC drivers being more efficient than the private drivers. He hinted that more money would have been spent if these steps were not taken. It is now brought out that the confederation of the transport workers unions and other bodies urged the government to reintroduce the diesel subsidy.