The School Bus Owners Association (SBOA) president Anil Garg on Monday announced a 15% increase in school bus fees starting from the academic year in June, attributing the hike to a sharp rise in diesel prices and mounting operational costs. The announcement comes ahead of school reopenings next month.
Fuel Costs Driving the Increase
Garg stated that the latest fuel price spike has severely impacted operators, with diesel rates rising by Rs 8 over the past 11 days and further increases expected. Fuel accounts for 65% of operational costs, making it the single largest variable expense. We are compelled to revise transportation fees because fuel costs are moving up rapidly, he explained.
Additional Cost Pressures
Several bus operators highlighted that the financial burden extends beyond fuel. They cited higher maintenance and spare-part costs, rising insurance premiums, permit and fitness expenses, staff salaries, and stricter compliance requirements. Small and mid-sized fleet owners reported difficulty in maintaining safety standards and service continuity while keeping charges stable.
Concerns Over Incremental Hikes
Garg expressed wariness about repeated incremental revisions if diesel prices continue climbing. We are against incremental hikes. If the government wants rates higher, it should announce one big hike so we can plan operational costs, he said. The state has approximately 40,000 school buses consuming nearly 1.2 lakh litres of diesel daily when operating at full scale, making the fuel cost burden substantial.
Historical Context
Over the past decade, school bus fees have been increased for various reasons, including bus procurement costs, road maintenance expenses, staff pay hikes, and mandatory implementation of GPS systems, CCTV cameras, and child safety equipment. Parking tariff increases have also contributed.
Proposed Alternatives
In a media statement on Tuesday, the association suggested an alternate day school functioning model with three days of physical classes and two days of online classes weekly. This would reduce bus runs, lowering fuel use and wear and tear. Another proposal involved reducing the number of trips to and from schools, currently multiple trips for morning and afternoon batches. However, many schools consider these suggestions impractical.
These are merely suggestions if schools want to reduce the bus fee. But given the current situation and diesel price hikes, we are left with no option but to hike fees. Most schools will reopen from June, and the hikes may take effect from next month, Garg added.
