On February 25 2021, the deputy chief minister of Karnataka has announced a statement that there could be a hike in Bmtc bus fare in the coming days.
According to the Laxman savadi, the bmtc bus fare has not increased from the last few years. The main cause for inflation is the 2020 covid issue. The government has to take huge losses during the entire year. To overcome the loss, the government has stated the rise of bmtc bus fare.
The statement is under review, and the chief minister of Karnataka does the final stamp. According to the information shared by the Times of India, The Bmtc bus fare is already the highest fare collected from the passengers.
The impact of a sudden rise in the price of petrol will affect the entire lifestyle. The fare of taxis, private cabs, autos, rickshaws, bmtc bus pass also increases. The private company running a travel business also raised a complaint about the driver's wage deductions.
The government is not able to run its public transport services without increasing the fare by 20%. As Ksrtc, NWKRTC, NEKRTC has already increased its fare by 12%. Now, it's time to update the fare of BMTC buses.
The government is expected to cover an amount of 70 crores Indian rupee₹ by the end of 2022. Due to the hike in fare, the government plans to compensate 112 transport employees who died due to Covid-19.
This is a big step taken by the government to support the families of 112 transport employees. Apart from this, the government is also going to improve its transport facilities and the demands of employees.
Why the Price of Petrol is increasing drastically
As compared to last year, the price of diesel is nearly about 45-50₹ per litre, but now its touch 77-80₹ per litre. In some states, the price has already made a century, and according to predictions, the prices are likely to get worse.
Before summer, it is expected to cross even more, but the question is due you think is it right?
The government is doing the right thing, and the answer is no. There is the news at the start of lockdown in 2020 that the oil generating country lacks space.
Storage of almost all the oil reserves country is nearly full, and they don't have space to store more oil. The worse situation is that they have to either dump it in the ocean or stop the refining.
So, within a few months of that situation, the price of petrol touched the sky. There are still many countries where the prices of petrol have not increased by 2% after lockdown. This could be due to geographical areas or the distance between them, but the petrol price increases more than 25-35% within a year.
How does the price of petrol increase?
First, the government imports oil in the form of Brent crude oil. This is the raw material from which many refining layers are done, and the final product is formed.
The cost of one Brent crude in January last year was 70$, and due to lockdown, the prices dropped to $14 a barrel. After lockdown, the price is trading at $20 per barrel in May.
And on January 26, the price of Brent crude oil was $55.48, which is still quite less. The main cause of the rising price is that India imports more than 80% of its crude oil requirements from other countries.
Due to the high demand for crude oil in India, the demand for crude oil over international markets also increases, which results in heavy import and export duty. The government has paid an import of 29% more than the previous month, and it is 11% higher than the previous year.