BMTC explores feasibility of setting up fuel stations at its depots

Business module being discussed with oil companies as a long term measure to address issues of purchase of fuel

Updated - July 06, 2022 08:03 am IST

Published - July 05, 2022 09:48 pm IST - Bengaluru

The BMTC needs more than 2.4 lakh liters of diesel every day to operate over 5,600 schedules of services. 

The BMTC needs more than 2.4 lakh liters of diesel every day to operate over 5,600 schedules of services.  | Photo Credit: K. MURALI KUMAR

As a long term measure to address issues of purchase of fuel, the Bangalore Metropolitan Transport Corporation (BMTC) is contemplating setting up retail fuel stations at depots. The corporation is working on various business modules with oil companies on the setting up of fuel stations.

Recently, the BMTC was in news for facing fuel shortage as the companies objected to the corporation purchasing diesel from retail outlets by asking the owners to directly send the tankers to the depots. The corporation had also written to the Petroleum and Natural Gas Ministry seeking its intervention.

The BMTC needs more than 2.4 lakh liters of diesel every day to operate over 5,600 schedules of services. Higher fuel cost for bulk purchase had forced the corporation to buy fuel from retail fuel stations. Diesel price per litre at fuel stations costs ₹89, whereas in bulk purchase, it costs ₹125 per litre.

Director (IT), BMTC Surya Sen A.V. said, “We are working on a business model on setting up of fuel stations. The BMTC will not invest in setting up the infrastructure. As per our estimates, fuel stations can come at 25 to 30 depots.”

Sources said that the proposed retail fuel stations will provide fuel to the general public and cater the demand of the corporation. Earlier, the BMTC had floated tenders to run and maintain fuel stations on a rental basis at seven depots. This initiative was taken to generate non farebox revenue. 

When asked about whether the BMTC has addressed the fuel purchase issues, the official said, “There is no fuel shortage as of now. Barring a few depots in north Bengaluru where our buses go to the retail fuel stations, we do not face any issues. All scheduled operations are operated as usual.”

Anbu Kuma, MD, Karnataka State Road Transport Corporation (KSRTC), said, “We are purchasing the fuel at the retail price to lessen the burden on fuel expenses. The difference between bulk purchase and retail price is ₹37. We have received the required support from the oil marketing companies concerned.” 

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