The daily rise in fuel price has affected the truck industry badly. Instead of changing the price every day, the government should consider revising it every quarter, said S Rajinder Singh, Secretary General, All India Confederation of Goods Vehicles Owners Association (AICGVOA).

“Diesel price increase is killing the trucking industry,” he said.

The Association said that between May 14 and 28, diesel price was increased by ₹3.24. There are nearly 90 lakh goods vehicle of all types in the country. Of these, nearly 60 lakh are running all the time.

Considering that a vehicle on an average consumes 50 to 150 litres of diesel a day, this means an increased spending of about ₹97 crore every day. Singh said truckers cannot recover the hike in fuel prices as the cargo rate revision takes at least three months. So, the trucker is left to absorb this increased cost.

“Continuing this practice (of daily price revision) will bankrupt truckers and destroy the trucking industry. We are sure that the impact on small operators has been considered by you,” he said in the letter.

In a letter to Prime Minister Narendra Modi in April, the Association had said that while diesel price has been rising continuously, petrol price has been moderate.

The Petroleum Ministry’s argument is that the price increase in diesel was due to the rising international prices. However, in 2013, diesel was priced at ₹53 per litre while international crude price was $110 per barrel. But, now, the crude is ruling around $75.

The Centre, the Association said, was levying abnormally high taxes on petroleum products, leading to the steep rise in their prices.

The Association urged Petroleum Minister Dharmendra Pradhan to immediately reverse the increase and restrict diesel price changes to once a quarter. Singh said truckers would launch an indefinite strike from June 18 if the plea is not heeded.

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