CHENNAI: The hike in the price of high-speed diesel by Rs 2.86 per litre by the oil marketing companies is expected to cost Tamil Nadu’s debt-ridden transport corporations, which rank among the largest diesel consumers in the country, an estimated Rs 175.58 crore annually in losses.
Around 19,000 buses operated by the eight state transport undertakings — State Express Transport Corporation (SETC), Metropolitan Transport Corporation (MTC) and the six divisions of Tamil Nadu State Transport Corporation (TNSTC) — consume an average of 16.82 lakh litres of high-speed diesel a day to run services covering nearly 81 lakh kilometres across 10,120 routes in the state.
According to Shunchonngam Jatak Chiru, secretary, Transport Department, the daily loss of the eight transport corporations, which already stands at around Rs 19 crore, is expected to rise further by Rs 48.11 lakh per day due to the spike in fuel expenses. “The annual loss is estimated at Rs 175.58 crore, provided there is no further hike in fuel prices. Around 19,000 buses are pressed into service every day, connecting nearly 98% of the villages in the state with a population of over 1,000 people,” he said.
The state transport undertakings spend around Rs 5,200 crore annually for purchasing high-speed diesel, which makes up nearly 26% of the total expenditure incurred on operating buses.
According to a section of transport workers’ unions, one of the key reasons for the mounting debts of the transport corporations is the failure to raise bus fares in proportion to rising fuel costs. Despite repeated demands, the previous DMK regime refused to hike the bus fare. It may be recalled that the government bus fares were last hiked in January 2018, when the price of high-speed diesel stood at Rs 65 per litre. The price has now climbed to Rs 95 per litre.
Transport dept daily loss at Rs 19 cr
Official records show that the average daily loss of the transport corporations went up from Rs 16.83 crore in 2022-23 to Rs 17.7 crore in 2023-24, before touching Rs 18.9 crore in 2024-25.
At the same time, the average daily patronage rose from 1.55 crore passengers in 2021-22 to 2.05 crore in 2025-26 — the highest ridership in the country. This includes nearly 70 lakh commuters travelling free of cost on 7,331 ordinary buses under the Vidiyal Payanam scheme.
At 58 paise per kilometre for ordinary buses and 100 paise for ultra deluxe, Tamil Nadu bus fares are the cheapest when compared to other transport corporations in states like Karnataka and Kerala. In other states, fares for ordinary buses range from 75 to 100 paise, while ultra deluxe fares range from 120 to 168 paise.
