4th Fuel Hike In 10 Days Pushes Transport Sector To Brink, Warns AIMTC; Triggers Severe Financial Strain

Mumbai: The transport industry is staring at a major financial crisis after the fourth fuel price hike within just 10 days pushed diesel prices up by nearly ₹8 per litre since May 15.

Transport bodies warned on Monday that the continuous rise in fuel costs is making operations increasingly unviable and could soon impact the country’s supply chain and movement of essential goods.

The latest diesel hike of around ₹2.71 per litre on monday has triggered fresh concern among transport operators already struggling with rising expenses on tyres, tolls, insurance, maintenance and loan repayments.

The All India Motor Transport Congress (AIMTC) said the repeated increases are putting unbearable pressure on transporters, especially small and medium operators.

Bal Malkit Singh, Advisor and Former President of AIMTC, said transporters are “receiving a slow poison dose every few days” due to frequent fuel hikes. “Fuel alone contributes nearly 55% of truck operating costs. Four hikes within 10 days have created a serious survival challenge for the industry,” he said.

He warned that the crisis is no longer limited to transporters and is now affecting the wider economy. According to AIMTC, reports from several regions indicate that many commercial vehicles are remaining off the roads because of rising operational costs, resulting in estimated losses of nearly ₹3,500 per vehicle per day in some sectors.

The transport body also raised concerns over possible loan defaults and growing financial stress within the sector if fuel prices continue to rise.

AIMTC has urged the government to introduce a scientific freight pricing model, ensure uninterrupted fuel supply, operationalise ECLGS support measures and provide immediate relief for transport operators.

“Transport is the backbone of India’s economy. If transport weakens, the economy weakens,” Singh added.

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