Truck operators hike freight charges by 15%

The All India Motor Transport Congress (AIMTC) today said it has increased freight charges across the country by 15% following the hike in diesel prices.

"We have decided to pass on the burden of increase in diesel price hike to customers. The freight charges will be increased with immediate effect by 15% across India," AIMTC spokesperson GP Singh told PTI.

He further said the transport industry was not in a position to absorb the price hike.

"The increase in diesel price will hit the common man as the cost of basic items will shoot up," he said.

Asking for a rollback of the diesel price hike, Singh said the government has not heeded the transporters' plea not to increase diesel price and AIMTC was keeping "all our options open" to press for its demand.

The apex body of truckers across the country, AIMTC claims to have around 80 lakh trucks under its aegis.

Yesterday, the government hiked diesel prices by a steep Rs 5.62 a litre. This was the biggest-ever hike in diesel prices excluding VAT or local sales tax following which the fuel is sold at Rs 46.95 per litre in the national capital as against Rs 41.32 a litre earlier.

Diesel prices were last hiked by Rs 3.37 per litre in June 2011.

IMPACT of diesel hike on CV makers

Commercial  vehicle  sales  to  bear the brunt:

Barring LCVs, CVs have been posting  negative  growth  YTDFY13,  down  13% yoy.

Freight rates have been declining  and  a  rise  in  diesel  price  (fuel constitutes major part of running  operations) will  impact fleet operators significantly. We expect fleet  operators  to  eventually  pass  this increase on to customers, even though  they  may  currently be playing the discounting game due to lack of cargo.