Mumbai, June 25: With global crude oil prices falling below USD 75 per barrel and returning to pre-war levels, the road transport sector has urged the Centre to immediately reduce diesel prices, saying transporters and consumers should benefit from the decline without delay.
The demand comes at a time when commercial vehicle operators are struggling with rising operational costs despite a slowdown in fuel prices internationally.
AIMTC Seeks Diesel Price Cut
Bal Malkit Singh, Adviser and former President of the All India Motor Transport Congress (AIMTC), has written to the Union Minister for Petroleum and Natural Gas, seeking an immediate revision in diesel prices. He said that when global crude prices rose, domestic diesel prices were increased, and the same principle should now apply as international prices have eased.
"Relief delayed is relief denied," Singh said, adding that diesel accounts for nearly 55-60 per cent of a commercial vehicle's operating cost, making fuel prices crucial for the survival of transport businesses, particularly Small Road Transport Operators (SRTOs).
Singh said transporters are facing mounting financial pressure as the cost of tyres, lubricants, AdBlue, spare parts, chassis, insurance, tolls, permits, driver wages, finance and compliance has increased significantly over the past few years.
However, freight rates have not risen proportionately due to intense competition and excess vehicle capacity, leaving many operators with shrinking margins and difficulty in repaying loans and meeting day-to-day expenses.
Industry Seeks Policy Reforms
Highlighting the sector's importance, Singh said road transport carries more than 70 per cent of India's domestic freight and plays a vital role in supporting manufacturing, agriculture, exports and the supply of essential commodities.
Also Watch:
He urged the government to reduce diesel prices in line with global crude rates, bring diesel under the GST regime, implement "One Nation, One Tax, One Uniform Diesel Price" across the country, and ensure uninterrupted fuel availability.
According to the AIMTC, lower diesel prices would reduce logistics costs, strengthen supply chains and ultimately benefit businesses and consumers alike.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
