The West Bengal government on Monday declared a further subsidy of Re 1 on a litre of diesel meant for buses, mini buses and taxis.
Making the announcement at the state secretariat in Kolkata, Finance Minister Asim Dasgupta said the subsidy would entail an annual cost of Rs 280 crore.
Following persistent demands from the operators to raise bus and taxi fares, the state government last month announced a subsidy of Re 1 per litre on diesel used for public transport. But the operators felt the relief was inadequate.
The central government has hiked the price of diesel by Rs 2 a litre.