AP Road Transport Corporation levies an additional diesel tax starting at Rs 5,60 per passenger


The Andhra Pradesh State Road Transport Corporation on Thursday levied an additional diesel levy ranging from Rs 5 to Rs 60 per passenger on various bus services to cover the huge losses due to the sharp increase in the price of diesel.

On April 13 this year, the APSRTC levied a diesel tax of Rs 2 to Rs 10 per passenger.

“Diesel price was Rs 107 per liter on 13th April which has now risen to Rs 131. The company is spending an additional Rs 2.50 crore per day due to rising diesel price. To cover this we have decided to levy another to cover the losses, APSRTC Chairman A Mallikarjuna Reddy and Managing Director Ch Dwaraka Tirumala Rao said in a statement here.

The increased rate due to the new diesel tax will come into effect on July 1, they said.

City bus services in Vijayawada and Visakhapatnam have been spared the additional tax, but student bus passes will become more expensive.

We increase the diesel tax only in unavoidable circumstances due to rising fuel prices. This is not a burden on passengers but only on diesel, they claimed.

APSRTC officials note that the common carrier has suffered a huge Rs 5,680 crore revenue loss over the past two years due to Covid-19.

The diesel tax has now been improved on a pro rata basis and passenger fares will increase accordingly.

For the first 35 kilometers in the rural services of Palle Velugu, there would be no additional tax. Also in luxury long-distance services, an additional tax would only be collected after 55 km.

As a result, every passenger traveling to Hyderabad from Vijayawada will have to pay an additional 60 rupees and 80 rupees in Visakhapatnam due to increased diesel tax, a senior RTC official said.

The additional diesel tax could help the company generate an additional income of Rs 1,500 crore per year, he added.

Even after levying the tax, we don’t even break even. In fact, we have to increase the ticket price by 32% to compensate for the losses, the official pointed out.



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