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Hike In Fuel Rates Affecting Road Transport Fraternity Deeply: Soaring Inflation

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The historic gain in petrol and diesel rates in India is affecting the road transport sector, and making the operations 'further unviable and loss making'. The whole sector is struggling to survive due to the hike in fuel prices. Significantly, a large number of small-scale operators have stopped operations. These operators are not being able to earn enough to meet the statutory compliances, taxes, insurance, and permit fees. In New Delhi today's petrol price is Rs. 105.41, in Mumbai, the rate is Rs. 120.51, and in Chennai, it is Rs. 110.95. In New Delhi, today's diesel price is Rs. 96.67, in Mumbai the rate is Rs. 104.77, while in Chennai the rate is Rs. 101.04.

 
Hike In Fuel Rates Affecting Road Transport Fraternity Deeply: Soaring Inflation

The hike in fuel prices is directly related to the high inflation rate in India. In February, this year, the inflation rate has increased to 6.07%, which is marginally above the RBI's target level. To keep the high inflation rate under control, the RBI might hike its repo rate in its ongoing MPC meeting, however, it is only anticipation now. Inflation rate and supply chain disruptions have affected the country's economy widely, and the government is concerned about it. If the government does not cut the fuel prices, it might be a near to impossible job to control the high inflation rate and ease the transport sector.

Hence, India's transport fraternity is clamoring for stopping the surge in fuel prices in the domestic markets. All India Motor Transport Congress (AIMTC) officially told the media, "This month Toll, Insurance, Tyre prices, and On-Road Corruption has increased considerably apart from the continuous diesel price hikes, which has broken the back of the road transport sector. The vehicles of small operators are getting stranded as they are not able to run their vehicles even at a break-even point. More than 85% of the transporters are small operators having one to five trucks about 65% of them are self-employed, owner-drivers."

AIMTC added, "There is a short supply of vehicles and it would create disruption in the logistics supply chain. There is all out the surge in inflation creating acute pressure on the sustenance and livelihoods. It is suggested that the Government should immediately stop daily hikes and revert to quarterly revision; Central and State Governments should reduce their taxes to give relief to the common man and the transport sector of India from all-out inflation." Around 20 crore Indians are dependent on the road transport sector; the onslaught of rising fuel prices and high inflation rates are making them suffer financially.

Story first published: Wednesday, April 6, 2022, 23:52 [IST]
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