CPI members protest against the hike in petrol and diesel prices in Bhubaneswar. Picture by Ashwinee Pati

Bhubaneswar, June 20: The private bus owners’ association is set to send an ultimatum to the state government seeking fare revision in the wake of the increase in the Value Added Tax (VAT) on diesel and petrol. The association will discontinue bus services across the state if the demand is not met.

The All-Odisha Private Bus Owners’ Association said they would hold a general body meeting next week and decide their future course of action. Since the last fare revision, diesel prices have gone up by around Rs 5.50 a litre and with the latest hike, it would be up by Rs 6.60 here.

“We had given a memorandum to the transport minister, department secretary and chief secretary about fare revision on June 13, but the government did not take any steps and increased tax again. If the government does not do anything immediately, the bus owners will stop operating their vehicles as they are bearing huge losses everyday,” said Debendra Sahu, general secretary of the association.

Following the fare revision on October 5 last year, ordinary bus fare had been fixed 59 paise a kilometre while for express buses, it was 62 paise. The fare was 82 paise for deluxe buses and Re 1 a kilometre for air-conditioned buses. Diesel price at that time was Rs 55.03 a litre. The price now is Rs 61.62.

Bus owners are losing between Rs 700 to Rs 1,000 a day on each bus. Around 75 per cent of the owners have two or three buses and they stand to lose more.

“In our memorandum, we had mentioned the 13 parameters based on which the government takes the decision of fare revision. The government has not yet even sent it to the technical committee,” said Sahu.