Following the fresh rebates on diesel prices by the Indian Oil Corporation (IOC), the Pepsu Road Transport Corporation (PRTC) is likely to save at least ₹6 crore annually on diesel expenditures.
As per the fresh rebates, diesel will now cost ₹1.98 per litre less than the market price. The PRTC’s daily consumption of diesel is estimated at 85,000 litre. Last year, PRTC got a rebate of ₹1.55 per litre.
PRTC managing director Gurluvleen Singh Sidhu said that being a bulk purchaser of diesel, the corporation had approached IOC for rebate in diesel prices.
“As per a memorandum of understanding (MoU), the PRTC has struck a deal with the IOC for five years (till November 30, 2024), for rebate of ₹1.98 per litre over procurement of diesel in bulk,” Sidhu said.
The PRTC authorities signed the memorandum in the presence of IOC general manager and chief divisional institutional business, Kapil Bhatt.
Last year, the Indian Oil and PRTC had struck a similar deal related to rebate on diesel prices for five years (till 2023), but due to fluctuation in prices of diesel in past one year, the PRTC had to approach IOC for a fresh rebate.
{{/usCountry}}Last year, the Indian Oil and PRTC had struck a similar deal related to rebate on diesel prices for five years (till 2023), but due to fluctuation in prices of diesel in past one year, the PRTC had to approach IOC for a fresh rebate.
{{/usCountry}}Meanwhile, PRTC chairman KK Sharma said the fresh rebate will boost the financial condition of the corporation and will help to bring down gap between income and expenses.
“The additional savings of ₹50 lakh per month and ₹6 crore annually will be a boon for PRTC,” he said.
The PRTC is presently running its full fleet of 1,073 buses from nine depots in Ludhiana, Kapurthala, Chandigarh, Patiala, Bathinda, Budhlada, Barnala, Faridkot and Sangrur.
Bus fares hike to improve income
The recent decision of the state transport department to increase bus fare by 2 paisa per kilometre is going to increase the annual income of the PRTC.
A senior official said that the move will add ₹2.5 lakh to the ₹1.38 crore daily revenue of the PRTC, with monthly gross income pegged at around ₹41.5 crore.
“Currently, the gap between the PRTC’s income and expenses is pegged at around ₹1 crore per month. Now, we are going to generate an extra of around ₹77.5 lakh per month, which will help in bringing down the losses,” he said.