The recent reduction in the price of high speed diesel by Rs. 3.37 a litre means a reduced fuel bill for Andhra Pradesh State Road Transport Corporation to the tune of over Rs. 150 crore a year. As soon as the news of the reduction came through, the senior management heaved a sigh of relief.
For a corporation that holds a Guinness Record for being the largest fleet owner operating over 22,000 buses under one umbrella, the reduction of diesel prices is a windfall. They did wish for more, keeping in mind the social responsibility factor of a corporation that faces stiff opposition and needs government nod every time it wants to push through a hike in fares.
According to Executive Director (Administration) A. Venkateswara Rao, the Corporation’s buses guzzle up a whopping 50 crore litres of diesel every year. At an estimated average kmpl (kilometre per litre) of 5.2, it means the buses notch up slightly over 250 crore km every year.
The cost of fuel, lubricants and consumables, including maintenance and spares, is one factor that makes the senior officials draw and re-draw their operational plans every time there is a hike in fuel prices.
This is because of the cascading effect consequent to hike in diesel prices. Interestingly, it is to the credit of the Corporation and its managerial policies that despite the burden of fuel price hikes, it manages appreciably high earnings per bus per km.
Although they would not admit it on record, the senior officials fervently wish a further reduction in diesel price saying it would be a win-win situation for the Corporation on one hand and for approximately 1.4 crore passengers who use the buses every day.
