CHENNAI/COIMBATORE: The hike in diesel price is expected to increase the prices of vegetables and essential commodities in Chennai, with traders and transport operators warning that freight charges have already started rising.
In Chennai, petrol now costs Rs 103.67 per litre after the hike by Rs 2.83 per litre on Friday, while diesel is priced at Rs 95.25 per litre following a hike of Rs 2.86 per litre.
At the Koyambedu wholesale market, traders said the impact may begin reflecting in retail prices from the weekend as most consignments dispatched before the fuel hike had already completed their trips.
“Transporters have started demanding higher payments for trips citing travel expenses. Even small city trips are expected to become costlier,” said SS Muthukumar, president of the Koyambedu Vegetable Merchants Association. He said a vehicle that earlier charged around Rs 1,000 for a trip from Koyambedu to Kolathur was now seeking nearly Rs 1,300.
He said long-distance freight rates were also expected to rise sharply and could increase vegetable prices by around Rs 3 to Rs 5 per kg. Pulses, rice, chilli, coriander and edible oils may also become costlier if transport expenses continue to climb.
Explaining the impact, Muthukumar said if freight charges for a 10-tonne load increase by around Rs 30,000 overall, the additional burden alone would translate to nearly Rs 3 per kg by the time the goods reach the market.
Wholesale traders said transporting a 20-tonne load from Maharashtra to Chennai, which earlier cost around Rs 1.1 lakh, could now rise to nearly Rs 1.3 lakh. Apart from diesel costs, transporters are also factoring in higher driver and cleaner expenses, including food and travel allowances.
Transport operators said the sharpest impact would be on long-distance movement of commodities into Chennai from Karnataka, Maharashtra and other states.
S Yuvaraj, president of the Tamil Nadu State Sand Lorry Owners Federation, said freight charges for loads arriving from Karnataka to Chennai, usually around Rs 25,000 to Rs 30,000, could rise by another Rs 5,000 after the diesel price hike.
“Diesel accounts for nearly 60% of operating costs for many goods vehicles, making it difficult for operators to absorb repeated increases,” he said, adding that long-distance operators were likely to revise rates immediately, while many transporters handling short city trips found it difficult to demand small fare revisions despite rising expenses.
Transport operators also said the All India Motor Transport Congress was planning a protest in June over transport-related issues, including demands linked to toll and fuel costs.
Meanwhile, lorry owners urged the union government to withdraw the fuel price hike, warning it will significantly increase transport operating costs and could eventually push up the prices of essential commodities.
C Dhanraj, president of the State Lorry Owners Federation-Tamil Nadu, told the media in Salem that the rise in fuel prices would further burden the already stressed transport sector.
He added that the transport sector is already facing financial strain due to rising costs of spare parts, increased toll charges, and higher insurance premiums. “Lorry owners are already reeling under severe losses. Therefore, the recent diesel price hike should be immediately revoked,” Dhanraj said.
He further noted that the price hike could have a wide impact on the sector. “It is likely to affect around 10 lakh trucks, including 4.5 lakh lorries operating in the State,” he said.