New Delhi: Truck operators across India are preparing for a possible rise in diesel prices, which could be the first major increase in nearly four years, as per a Bloomberg report. Industry players say higher fuel costs may hit operations hard, with some warning that up to 30 percent of trucks could go off the roads if prices rise sharply.
Stable Prices Despite Global Tensions
So far, India has managed to keep fuel prices stable even as tensions in the Middle East pushed global crude prices higher, Bloomberg reported. The government has protected consumers by limiting price increases, while state-run oil companies have absorbed losses.
However, this situation may not continue for long as global pressure builds.
Elections Delay Likely Price Hike
Market experts and industry insiders believe that any fuel price hike may happen after key regional elections conclude, according to the Bloomberg report. Once political pressures ease, oil companies could raise diesel prices to recover losses.
Truckers are already feeling the impact. Many report informal fuel rationing, forcing them to refuel more often and slowing deliveries.
Supply Pressure And Rising Demand
Private fuel retailers such as Nayara Energy have already increased prices, while companies like Reliance Industries and BP have limited fuel supplies, Bloomberg said. This has pushed more demand toward government-run petrol pumps.
As a result, some state-run outlets are seeing higher demand and occasional shortages, though officials say supply remains normal overall.
Impact On Economy And Inflation
Diesel plays a critical role in India’s economy, as nearly 70 percent of goods are transported by road. Any increase in diesel prices will raise transportation costs, which could lead to higher prices for goods and services.
Economists cited in the Bloomberg report said that if crude oil remains around USD 95 per barrel, diesel prices may rise by Rs 8–15 per litre. Even at slightly lower crude prices, a hike of Rs 3–7 per litre is likely.
Government Urges Calm
The government has asked people not to panic buy fuel and maintains that supplies are stable, as per Bloomberg. It has also taken steps such as cutting taxes and adjusting export duties to control prices.
Still, with crude prices staying high, a diesel price hike now looks increasingly likely in the coming weeks.
