Categories: Business

Unbridled hike in fuel prices may force transporters to suspend operations says AIMTC. Increase in diesel prices may increase the fare by 20 percent: Transport Union

Photo: FILE

Unbridled hike in fuel prices may force transporters to suspend operations says AIMTC

Mumbai. A union of truck operators demanded a monthly or quarterly review of diesel prices, saying that if the price of fuel continues to rise on a daily basis, the fare may have to increase by 20 percent. Significantly, the price of diesel kept increasing for 23 days last month. Fuel accounts for about 65 percent of the truck's operating costs. The second major expense is the toll charge, which accounts for 20 percent of the operating cost.

Bal Malkit Singh, former chairman of All India Motors Transport Congress (AIMTC) and chairman of the core committee, said in a statement, "Demand is already low and around 55 per cent of vehicles are already standing. In such a situation it is difficult to maintain operations. The lockdown implemented due to Kovid-19 is destroying the road transport sector.

He said that in order to maintain truck operations in such a situation, if not today then tomorrow the fare will definitely have to be improved. He said that there is no other way than to pass this cost on to the customers. Singh said, "To sustain the business at this time, a 20 percent increase in freight is necessary."

This post was published on July 19, 2020 6:50 pm

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