Repeated smaller fuel price hikes create uncertainty: Transporters

Mumbai : Four recent fuel hikes with a cumulative increase of nearly Rs 8 per litre has created a serious survival challenge for the industry, said transporters on Monday.Fuel alone accounts for nearly 55% of truck operating costs. Along with increasing costs of tyres, insurance, tolls, maintenance, finance costs and statutory compliances, the viability of transport operations is under severe pressure.“The impact is now moving beyond transporters and becoming a national supply chain issue. Reports from some of the regions across the country indicate a substantial number of vehicles remaining idle due to increasing operating costs and operational challenges, with estimated losses of nearly Rs 3,500 per vehicle per day in certain sectors,” said Bal Malkit Singh from All India Motor Transport Congress. “The cascading impact is already visible through disruptions in vehicle movement, pressure on supply chains, delayed deliveries and increasing stress on manufacturing, import-export activities and movement of essential commodities,” he said.Transporters said that rather than repeated smaller hikes creating uncertainty every few days, a one-time transparent fuel pricing decision would allow transporters and customers to work out sustainable operating strategies, freight structures and business viability.