High diesel costs hit 600 Malappuram buses

MALAPPURAM: Around 600 private buses  in Malappuram district  have gone out of service over the past few years due to the ever-increasing prices of diesel and spare parts. Some 2,000 employees have been rendered  jobless or forced to seek other jobs.  The bus operators’ organisations have demanded a cut in diesel prices to keep the buses running.  “A hike in the bus fares  alone would not help us to survive. The prices of  diesel have gone up steadily since the last revision of fares in 2014. The huge increase in insurance rate and road tax has contributed to the current crisis and forced owners to stop around 600 services in the district alone,” said  Mr Hamsa Erikunnan, state treasurer and district secretary of Bus Operators Federation. 

During the past three years alone,  the insurance premium has increased by 72 per cent. “In 2015 the premium increased by 25 per cent. There was an increase of 10 per cent in 2016 and 28 per cent in  2017.  The implementation of GST also contributed to an increase of '4,000 in the premium,” he said.   A majority of the stopped services were small buses which were affected by the revamped road tax.  The income of small bus services which was around Rs 5,000 per day has now come down to Rs 1,000- Rs 1,500.

“Bus owners are  struggling to meet the huge expenses with the dwindling revenue. Only a sharp cut of Rs 15 in the diesel price would help us to stay afloat,” said Mr Abdu Vdakkan, Kottakkal area secretary of Bus Operators’ Organisation.  The private buses also have been affected by the KSRTC’s services in the revenue generating routes. “The KSRTC has  started to ply more buses on such routes while withdrawing from lower income routes in the district,” he said.