'Diesel at market rate to hit state transport'

CHANDIGARH: Describing as "irrational" the Centre's decision on diesel pricing, state transport undertakings of Punjab and Haryana today said it would "kill" the state transport services as government undertakings will have to pay around Rs 10 more per litre of diesel compared to private bus operators.

State roadways undertakings, which run their own filling stations for refuelling government buses operating on intra-state and inter-state routes transporting the common man, would be hit as their operating cost would go up by about 25 per cent, they said.

Punjab has two government owned bus services - Punjab Roadways and PRTC, while neighbouring Haryana runs Haryana Roadways. Both the states run various types of buses, including ordinary and super luxury Volvo and Mercedes' buses.

The three government bus operators do not buy diesel from private filling stations. The three purchase diesel in bulk for refilling of their buses at various depots spread across the two states.

Asking the Centre to reconsider the decision, the state transport authorities even threatened to switch over to private fuel pumps rather than buying directly in bulk from oil marketing companies.

The Centre yesterday announced dual pricing regime for diesel whereby bulk consumers including railways, state transports will have to pay market rate of diesel which is Rs 10.81 a litre is costlier than subsidised diesel which is priced at around Rs 45 a litre.

State owned buses will get diesel at the market price of around Rs 55 per litre as compared with private bus operators who would get diesel at around Rs 45 per litre.