A combination of inclement weather and high fuel bills has proven costly for transporters. While rains and hailstorms have dampened truck rentals, the rising price of diesel threatens to trim their margins.
Industry watchers say truck rentals in the fortnight ended April 15 dropped 4-5 per cent owing to rains and hailstorm damage in the eastern, northern and central States. Bad weather has led to lower and slower procurement of wheat. Dispatches of summer fruits and vegetables are also down 10-15 per cent.
Moreover, the introduction of the e-way bill digital transit pass system on inter-State trade routes from April 1 has led to a sudden drop in cargo offerings on trunk routes.
These factors, according to the Indian Foundation of Transport Research and Training, have led to a dip in truck rentals. For a Delhi-Mumbai round-trip on a full-truck load, the rent has fallen 4.3 per cent, from ₹91,800 to ₹87,800. For a Delhi-Chennai round-trip, the rental is down 5 per cent — from ₹1.29 lakh to ₹1.22 lakh.
Adding fuel to the fire
The spurt in diesel prices has worsened the truckers’ plight. On April 1, diesel retailed at ₹ 68.77 a litre in Mumbai; on April 15, the price was ₹69.31.
Fuel prices have continued to rise since, and diesel was sold at ₹70.20 on April 26 in Mumbai. In a press statement, the All India Motor Transport Congress (AIMTC) urged the government to lower excise duty rates and regulate fuel prices.
“Petrol and diesel prices touched record levels over the weekend, with petrol selling at ₹82.25 a litre, the highest it’s been under the current government’s tenure, and diesel at ₹70.01, due to rising global crude oil prices but also on high excise duty on the fuels,” the AIMTC statement said.
Almost half the retail price of fuel comprises taxes, which is mopped up by the Centre and States.
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