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Diesel Price Hike Adds Rs 175 Crore Burden on Tamil Nadu Transport

Tamil Nadu's state-run transport corporations face an additional Rs 175.58 crore annual burden due to a recent Rs 2.86 per litre diesel price hike. Daily operational losses are expected to rise by Rs 48.11 lakh, adding to the existing Rs 19 crore daily loss. Transport workers blame the government for not revising bus fares since 2018, despite diesel prices rising from Rs 65 to Rs 95 per litre. Despite losses, Tamil Nadu maintains the highest public transport ridership in India, with 2.05 crore daily commuters.

Key Points: Diesel Price Hike Deepens TN Transport Crisis

  • Diesel price hike adds Rs 175.58 crore annual burden
  • Daily losses rise by Rs 48.11 lakh
  • Bus fares unchanged since 2018 despite fuel price surge
  • TN has highest public transport ridership with 2.05 crore daily commuters
2 min read

'Diesel price hike to deepen financial crisis of Tamil Nadu transport corporations'

Tamil Nadu transport corporations face Rs 175.58 crore annual burden after diesel price hike. Daily losses near Rs 19 crore, but bus fares unchanged since 2018.

"The transport corporations are already incurring a combined daily loss of nearly Rs 19 crore. - Shunchonngam Jatak Chiru"

Chennai, May 16

Tamil Nadu's state-run transport corporations are staring at an additional annual financial burden of nearly Rs 175.58 crore following the recent Rs 2.86 per litre hike in high-speed diesel prices announced by oil marketing companies.

The increase is expected to further strain the already loss-making public transport sector in the state. The eight state transport undertakings - Metropolitan Transport Corporation (MTC), State Express Transport Corporation (SETC) and the six divisions of Tamil Nadu State Transport Corporation (TNSTC) - together operate around 19,000 buses every day across more than 10,120 routes. These buses consume an average of 16.82 lakh litres of diesel daily while covering nearly 81 lakh kilometres across Tamil Nadu.

According to Transport Department Secretary Shunchonngam Jatak Chiru, the transport corporations are already incurring a combined daily loss of nearly Rs 19 crore. With the latest rise in diesel prices, the daily operational loss is expected to rise further by around Rs 48.11 lakh.

Officials said the transport corporations spend nearly Rs 5,200 crore annually on diesel purchases alone, which accounts for around 26 per cent of the total expenditure involved in operating bus services. The state-run buses continue to remain the backbone of Tamil Nadu's public transport network, connecting nearly 98 per cent of villages with populations exceeding 1,000.

Transport workers' unions have blamed the worsening financial condition on the government's continued reluctance to revise bus fares in proportion to rising fuel prices. Government bus fares were last revised in January 2018 when diesel was priced at around Rs 65 per litre. The price has now touched nearly Rs 95 per litre.

Official records show that the average daily loss of the transport corporations rose steadily from Rs 16.83 crore in 2022-23 to Rs 17.7 crore in 2023-24 before reaching Rs 18.9 crore in 2024-25. Despite the mounting losses, Tamil Nadu continues to register the highest public transport ridership in the country.

Average daily passenger usage increased from 1.55 crore commuters in 2021-22 to nearly 2.05 crore in 2025-26. This includes around 70 lakh women passengers travelling free of cost under the State government's Vidiyal Payanam scheme operating on 7,331 ordinary buses.

Tamil Nadu also continues to maintain one of the cheapest bus fare structures in the country. The fare for ordinary buses stands at 58 paise per kilometre, while ultra deluxe buses charge Rs 1 per kilometre.

In neighbouring states such as Karnataka and Kerala, ordinary bus fares range between 75 paise and Rs 1 per kilometre, while premium services charge between Rs 1.20 and Rs 1.68 per kilometre.

- IANS

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Reader Comments

P
Priya S
While I understand the people's sentiment about not raising fares, someone has to foot the bill eventually. Tamil Nadu has one of the cheapest bus fares in the country, and that's commendable. But the Vidiyal Payanam scheme for women, though noble, adds strain. Maybe they can look at optimising routes or reducing non-essential services? Just a thought. 🤔
R
Raghav A
I'm a daily commuter on these government buses. Yes, the service is vital, but the quality is also poor - old buses, irregular schedules. Making them lose even more money will lead to further neglect. The government should consider a small fare hike, maybe 20-25 paise per km, and use that to improve services. That way passengers get better value and corporations don't bleed. 🚍
J
James A
Interesting perspective from an outsider: You guys have an incredible public transport system with over 2 crore daily riders. In the US, we only dream of such usage. But running that at a loss is unsustainable. The policymakers need to find a middle ground - perhaps fuel-efficient buses, CNG conversion, or even fare indexing to diesel prices. Otherwise, this backbone of Tamil Nadu could break. 🇮🇳
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Vikram M
Very critical situation. The transport unions are right - fares haven't been revised since 2018 while diesel went from 65 to 95 rupees. That's a 46% increase! How can any business survive like that? Even a modest 25 paise/km hike would still keep it affordable compared to Kerala and Karnataka. But politicians are scared of backlash. Common sense should prevail. 🤷‍♂️
N
Naveen S

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