President of Bombay Goods and Transport Association Girish Agarwal said the industry is facing tough time and reeling under turmoil and rough weather.
Transporters have now sent a SOS to the government saying that the transport industry was on verge of collapse due to recent diesel hike and that they had no option, but to pass on the steep hike to the consumers. While one of the two national bodies was in favour of going on a strike to protest against the hike, a final decision is still awaited.
“Now, as diesel price has increased effectively for the consumer by around Rs. 4 per litre (including taxes), the whole trade and industry will also be forced to increase the prices of goods and services, and the inflation will further escalate putting back all the efforts of the government and RBI to control the inflation and prices of commodities,” a senior transporter said.
“The government increased the price of diesel substantially by citing higher international prices of crude oil around $100 per barrel. But they should remember that the price of diesel was around Rs35 per litre even when the crude prices touched around $ 140 per barrel earlier,” he added.
“Definitely there is something wrong in the whole system of pricing and taxation on Diesel, Kerosene, LPG and Petrol and it needs to be scrutinised seriously on SOS basis by the stake holders, i.e. the representatives of the government, oil marketing companies and users, which are transporters & truck owners and farmers (for diesel), and general consumer (for kerosene, LPG and petrol),” he added.
President of Bombay Goods and Transport Association Girish Agarwal said the industry is facing tough time and reeling under turmoil and rough weather. On one side the service users demand cut in freight rates and other operating costs applicable to them while service providers cannot offer any reduction due to increase in costs in various factors affecting transportation of goods by road.
He said that they had appealed to the government to roll back the price hike and take necessary action for review of system of pricing and taxation to make it more user friendly.
Other costs bothering transporters include:
Toll is imposed so heavily that now it has become the second important element of the cost of operating any vehicle.
Tyre and tube prices have gone up more than 50% in last one year.
Chassis price has gone up by almost 30% in recent times.
Price of lubricant / grease, and other spare parts of the vehicles have gone up by over 25% on an average basis.
Insurance Premium of vehicles have gone up recently by over 68% for third party risks.
Cost of providing labour at different places has increased by minimum 10% to 40%
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