Welcoming Nayara Energy's decision to reduce petrol prices by Rs 5 per litre and diesel prices by Rs 3 per litre, Bal Malkit Singh, Advisor and former president of the All India Motor Transport Congress (AIMTC), on Wednesday urged the Centre, public sector oil marketing companies and other private fuel retailers to pass on the benefits of lower global crude oil prices to transporters and consumers.
Crude Price Context
Singh said that with international crude oil prices falling below US$70 per barrel and nearing pre-war levels, domestic fuel prices should also be revised accordingly.
"Nayara Energy has demonstrated that when international crude prices decline, the benefit can and should be passed on to consumers. We appeal to all oil marketing companies and the Government to take similar steps without delay," he said.
Transport Sector Stress
He said the road transport sector has been under considerable financial pressure over the past several months due to repeated increases in fuel prices. Diesel accounts for nearly 55-60% of the operating cost of a commercial vehicle, and every hike has pushed up logistics costs, he said.
According to Singh, transport operators have also been grappling with rising expenses on tyres and spare parts, lubricants and AdBlue, insurance premiums, toll charges, permits, chassis prices, driver wages, daily allowances, finance costs, loan repayments and regulatory compliance, while freight rates have remained under pressure because of stiff competition.
Small Operators Worst Hit
He said small road transport operators have been particularly affected by the rising costs.
"Lower fuel prices will not only provide immediate relief to transporters but will also reduce logistics costs, support industry, moderate inflation and ultimately benefit every citizen. A strong transport sector is essential for a strong economy," Singh said.
Referring to his recent representation to Union Petroleum and Natural Gas Minister Hardeep Singh Puri, Singh reiterated the transport industry's demands, including an immediate reduction in diesel prices in line with global crude prices, restoration of domestic fuel prices closer to pre-war levels, bringing diesel under the GST regime, implementing "One Nation, One Tax, One Uniform Diesel Price", and ensuring that the benefits of lower crude prices are passed on to transporters and consumers without delay.
He said the transport industry has absorbed successive fuel price increases for years and that the current decline in crude oil prices presents an opportunity to provide meaningful relief, strengthen India's supply chain and improve the competitiveness of domestic industry.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
