E-Paper
Cost of moving goods across India to rise by 3% due to diesel price hike: AITWA
All India Transporters Welfare Association (AITWA) said the cost of moving goods across India will rise as much as 3% owing to the recent increase in diesel prices in light of the West Asia crisis
The cost of moving goods across India will rise as much as 3% owing to the recent increase in diesel prices in light of the West Asia crisis, All India Transporters Welfare Association (AITWA), which represents approximately 65% of the organised logistics providers, said on Friday.
Ashok Goyal, national president of AITWA, said that the road transport industry, which serves as the backbone of the nation’s supply chain and economic movement, is heavily dependent on diesel and oil-derived products for its operations. “In view of the cumulative increase in operational costs and now the diesel price hike, transporters are left with no option but to partially pass on the burden to customers. We expect freight rates across sectors to increase by approximately 2.5–3% immediately,” he said.
AITWA said the government delaying the fuel price increase for several weeks has provided significant cushioning and support to the nation, businesses, and consumers. However, he highlighted that the transport industry has already been under tremendous cost pressure over the last several weeks. Prices of DEF/urea used in BS-VI vehicles have increased by more than 50%, while tyre, lubricant, toll, and other operational inputs have also risen substantially.
The association said they are promoting and working to transition to electric and other alternative fuels.
He also said uninterrupted fuel availability remains critical for maintaining smooth logistics operations across the country.
“We’re working with the government and relevant authorities to ensure a continuous fuel supply and avoid disruptions, as uncertainty and supply shortages are increasing costs and reducing operational efficiency across the logistics ecosystem”, he said,
