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Tuesday, May 20, 2008
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Tamil Nadu

Tamil Nadu

The shift towards public transport

Despite the artificial stability in fuel prices, more people in the city are opting to travel to workplaces by bus and the MRTS. N. Ravi Kumar on the reasons for this trend

We are beset with many problems which put a huge strain on the business
M. Kannan TN Petroleum Dealers’ Association
A fuel efficient car is no match for the train services when it comes to saving
P.V. Krishnan Civil engineer

Prices of petrol and diesel have held for over three months now, but incremental increases over the last six years have forced numbers of city residents to shift to public transport.

Although no statistics are available for the magnitude of this shift, it is borne out by the drop in the per pump thruput (quantity of fuel dispensed by each pump in a petrol bunk) and growing popularity of new modes of public transport, particularly the Mass Rapid Transit System (MRTS).

The short-term artificial stability in the prices of petrol and diesel must be looked at against the backdrop of the huge increase over the past few years. From May 2002, diesel prices in Chennai have gone up from Rs. 18.10 a litre to the present Rs. 34.40, while the cost of petrol has moved up from Rs. 28.49 to Rs. 49.61. Adding to this is the more recent increase in such things as lubricants, motor spares, tyres and maintenance costs, which together make the cost of owning and running a personal vehicle much more expensive than it was a few months ago. A litre of lubricant for two wheelers has gone up by Rs. 6 a litre and is expected to go up further in the near future as the base oil prices have increased.

Take the case of K. Ramakrishnan. The Madras High Court advocate says its no longer worthwhile to do the 25 km journey from his Thoraipakkam residence to Broadway. “This means spending at least one litre of petrol every day. And then, what about the cost of medicines for my riding-induced backache?” A mixture of cost and convenience has led Mr. Ramakrishnan to use the bus and the MRTS. His cost: a mere Rs. 20, a monthly saving of Rs. 900. And, of course, no more backaches.

P.V. Krishnan, civil engineer and resident of Velachery, saves even more ever since the MRTS service was extended to his locality. Earlier, he travelled by his WagonR to his work site in Korattur, about 30 km from home. “My car is fuel efficient, but the cost still worked out to Rs. 240 every day. Now, I spend just Rs. 415 (season ticket) for an entire 90-day stretch.”

Despite the shortfalls of the public transport system, many others will be persuaded to go the way of Mr. Ramakrishnan if the national oil companies are able to persuade the government to increase fuel prices further. But this is not the reason why petroleum dealers are lobbying against any upward revision.

Transport Minister K. N. Nehru recently said that the patronage for MTC buses has increased in the last two years — from 40 lakh commuters every day to 44 lakh.

Also, the number of MRTS passengers went up from 7,000 to 21,000 every day within a month of its extension till Velachery. The number continues to grow.

With more motorists opting for public transport, petroleum dealers have found their monthly thruput reduce from 214 kilolitres in 2001 to 124 kilolitres now. This is likely to register a further fall in the event of an increase in fuel prices.

The falling thruput occurs against the backdrop of an increase in the number of retail outlets, from 18,900 in 2002 to over 37,100. M. Kannan, President of the Tamil Nadu Petroleum Dealers’ Association, says that they are beset with other problems, such as manpower shortages, increased salaries, and mounting electricity bills.

Though the dealers’ commission was revised some time ago, these rising expenses, besides the cost of additional capital in view of the increased cost of fuel, are not covered by the revision.

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