Karnataka hikes bus fares by up to 35% as State Transport corporations pile up Rs 9,912 crore in losses

In a major disappointment for the common people, the Congress government in Karnataka has announced a hike in bus fares across four state-run transport corporations as they face a crippling financial crunch. Transport Minister Byrathi Suresh announced the hike at a press conference in Bengaluru, which became effective from the early hours of Thursday (November 5, 2026).

Under the revised fares, prices for the Karnataka State Road Transport Corporation (KSRTC), North Western Karnataka Road Transport Corporation (NWKRTC), and the Kalyana Karnataka Road Transport Corporation (KKRTC) have increased by an average of 23%. The prices for bus services under the Bengaluru Metropolitan Transport Corporation (BMTC) have been hiked by 32% to 35%.

The decision comes as another financial blow for the people of the state who are already reeling under the burden of hikes in prices of essential amenities. The increased bus fares will impact lakhs of daily commuters who use bus services to travel to work and the lower-income groups in the state who depend on bus services.

The price hike is triggered by mounting financial losses, rising diesel prices, employee salary liabilities, and a cash-flow crisis in the state transport corporations, even as the state government continues to operate the Jan Shakti scheme, allowing free bus rides to women and transgender persons.

While the state transport minister claimed that the price hike is not caused by the Jan Shakti scheme, ₹6,362 crore in reimbursements remains pending to the four state-run transport corporations under the scheme. The cumulative losses of all four state transport corporations amount to ₹9,912 crore.

According to Suresh, the state government has so far reimbursed ₹16,595.75 crore to state transport corporations. He said that the remaining amount is being released to the transport department in phases. The minister justified the fare hikes, citing similar hikes in Tamil Nadu and Maharashtra.

Last month, bus services across several parts of Karnataka were disrupted due to a diesel shortage caused by non-payment of dues to the Hindustan Petroleum Corporation Limited (HPCL). Last year in January, the Congress government in Karnataka announced a 15% hike in prices of services offered by the KSRTC, BMTC, NERTC and NWRTC buses. The government cited operational costs, the rise in fuel prices, and staff expenditures as the reasons that contributed to the price hike.

Ever since the Congress government came to power in Karnataka, the state has been facing financial challenges, including the financial crisis in the state transport corporations and non-payment of salaries of government employees. While payments of salaries and other dues suffered delays, the government prioritised expenditure on freebie schemes.