Oil Marketing Companies to Increase Fuel Discount for MSRTC Buses

State-run oil marketing companies have decided to increase the fuel discount for the loss-making Maharashtra State Road Transport Corporation (MSRTC) from August 1, officials said.

The move is expected to save around Rs 12 crore a year.

"The Indian Oil and the Bharat Petroleum have agreed to increase the discount on diesel supplied to MSRTC by 30 paise per litre. This will result in a daily saving of around Rs 3.23 lakh, amounting to Rs 11.8 crore per year," the MSRTC said in a release on Wednesday. The oil marketing companies agreed to increase the discount following persuasion by Maharashtra Transport Minister Pratap Sarnaik, who is also the chairman of the corporation, it said.

The MSRTC, with a fleet of more than 15,000 buses, buys nearly 10.77 lakh litres of diesel daily across its 251 depots. The corporation has already announced a plan to expand its fleet in future, adding 5,000 buses per year.

Sarnaik said the MSRTC's financial condition is fragile and stressed the need to cut costs wherever possible and explore alternative revenue sources beyond ticket sales to make the corporation financially stronger.