The Punjab Transport Department has sought an increase in its electric bus service ‘Electro’ flat fare from Rs20 to Rs30, as it called for ending the subsidy.

Earlier this week, the provincial government launched the electric bus service in the provincial capital, Lahore, covering several key locations.

It is expected that as many as 17,000 people would use the facility daily. The service features free Wi-Fi, mobile charging ports, and CCTV cameras to enhance commuter safety.

The new electric bus route would cover several locations in the city.

According to the provincial government, there were plans to introduce 500 more electric buses, with upcoming services in Faisalabad and Gujranwala.

In the past, the subsidy amount was estimated at Rs898 million annually before the fare adjustment. Keeping the fare at Rs20 could result in an anticipated annual subsidy of Rs1 billion after twelve years.

The operational cost for the first year of running electric buses has been estimated at Rs267.3 million while expected revenue for the same period is projected to be Rs118.3 million. A subsidy of Rs1.489 billion would be required to operate the electric buses in the first year.

For the second year, the operational cost is estimated at Rs288.7 million, with anticipated revenue of Rs132.8 million. The required subsidy for the second year is projected to be Rs1.558 billion.

The Punjab Transport Company has begun preparing a working paper regarding the subsidies.