The Bus Owners Cooperative Society (BOCS) initiated negotiations with the National Transport Authority (NTA) to obtain grants of nine to 12 per cent on the price of diesel. The BOCS is compelled to start negotiations with the relevant authorities following a second increase in diesel prices in less than three months since the beginning of [...]
The Bus Owners Cooperative Society (BOCS) initiated negotiations with the National Transport Authority (NTA) to obtain grants of nine to 12 per cent on the price of diesel.
The BOCS is compelled to start negotiations with the relevant authorities following a second increase in diesel prices in less than three months since the beginning of the year.
Diesel registered an increase of nine per cent that amounts to a hike of Rs 3.60 per litre. From Monday onwards, diesel thus cost Rs 43.50 per litre. From January to date, diesel has increased by 22.5 per cent.
Dhoop Gowreesunker, president of the BOCS argued that the situation has become complicated for the bus owners.
“We sincerely hope that our efforts will bear fruits soon as our profit margin is quite limited while the expenses are rising. In January, one of the officers of the NTA informed us that subsidies will not be obtained as the price of diesel is below the base price of Rs 40. Following this new increase, I think we are eligible to get subsidies to ease our situation,” he said.
He also believes that the latest rise has caused additional expenses of Rs 350 to Rs 400 per day per bus.
“The bus owners will now pay a surplus of Rs 12,000 on diesel monthly. It has not helped as the sale price of the bus also rose and is around Rs 3.2 million. There was no other choice but to import quality buses to ensure passenger comfort. We do not hesitate in investing heavily but we must also recover our investment within a reasonable time,” he said.
Currently, a revision of the bus fare is not on the agenda. According to the NTA, the final decision belongs to the Min
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