Odisha Bus Fare Hike Announced After Rise in Diesel Prices

KEY TAKEAWAYS:

Odisha increased bus fares across all major categories from today.
The revision follows a rise in diesel prices.
Ordinary, Express, Deluxe and AC Deluxe bus fares have all been increased.

Cuttack: The State Transport Authority Odisha on Thursday announced a hike in bus fares across Odisha after the recent increase in diesel prices.

The revised fares came into effect immediately under the state’s automatic fare adjustment mechanism, which links transport fares to fluctuations in fuel costs.

According to the notification issued by the office of the Transport Commissioner-cum-Chairman of the STA, diesel prices increased from Rs 92.62 per litre in March 2024 to Rs 95.87 per litre on May 15, 2026.

Officials said the increase resulted in both direct and cumulative fuel cost impact, prompting the fare revision for stage carriage buses operating within Odisha.

Odisha Bus Fare Hike Across All Categories

The revised per-kilometre bus fares are as follows:

Ordinary Bus

Increased from 88 paise/km to 90 paise/km

Express Bus

Increased from 92 paise/km to 94 paise/km

Deluxe Bus

Increased from 127 paise/km to 131 paise/km

AC Deluxe Bus

Increased from 155 paise/km to 159 paise/km

Super Deluxe Bus

Increased from 241 paise/km to 247 paise/km

The fare hike applies to all stage carriage buses except town bus services.

Diesel Price Rise Triggers Automatic Fare Revision

Odisha follows an automatic fare adjustment mechanism that allows transport fares to be revised whenever fuel prices move beyond specified thresholds.

The latest hike comes shortly after petrol and diesel prices were raised nationally due to increasing crude oil costs linked to global geopolitical tensions.

Transport operators have repeatedly argued that higher diesel prices significantly affect operational expenses, especially for long-distance bus services.

The second-order effect of rising transport costs could include increased daily commuting expenses for passengers and higher logistics costs across sectors dependent on road transport.

Passengers Likely to Feel Inflation Pressure

The fare increase is expected to affect thousands of daily passengers, including office-goers, students and inter-district travelers.

With fuel prices already pushing inflationary pressure across the economy, transport fare hikes may further increase household expenditure in both urban and rural areas.

Economists note that transport cost revisions often influence prices of goods and services indirectly because road transport remains central to supply chains and passenger movement in Odisha.

For now, transport authorities maintain that the fare revision was necessary to balance rising operational costs faced by bus operators.

Also Read | Petrol and Diesel Prices H iked by Rs 3 Per Litre Across India, In Bhubaneswar Rs 3.57

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