The hike in diesel price is showing effects on the Andhra Pradesh State Road Transport Corporation (APSRTC) revenues.
The APSRTC is facing an increase in expenditure as the corporation is using diesel which is worth more than Rs 8 Lakh every day. Due to the rise of over Rs 5 in fuel prices in the last one month, more than Rs 10 crore of loss was observed by the state’s RTC. Earlier, Rs 30 crore worth diesel was being used by the transport corporation per annum and at a quantity of 2.5 crore litres monthly on an average. Now, with the hike in the prices, APSRTC is forced to pay Rs 10 crore extra.
APSRTC chairman Varla Ramaiah said, “We have reduced our operational losses from Rs 790 crore to Rs 450 crore in the last financial year. In the same period we have lost about Rs 210 crore because of the hike.”
A slight relief has been brought on the people of Andhra Pradesh as the AP government reduced the price of Petrol and Diesel by Rs 2.
The Chief Minister of Andhra Pradesh, Nara Chandrababu Naidu has issued the orders regarding the price reduction around 3.30 pm today. The decision has been taken during the nationwide protests against the hike of fuel prices in the country.