CHENNAI: Even as prices of essential commodities have begun to rise following the increase in diesel prices, transporters and tour vehicle operators have expressed concern over the daily revision in fuel prices, saying it has become difficult to fix freight charges and sustain operations.
Transporters said freight charges are fixed before every trip based on the prevailing diesel price, but daily increases in fuel rates make it impossible to recover the additional expenditure incurred during transit, especially on long routes such as Chennai to Delhi or Mumbai.
Chennai Road Transport Association honorary secretary G Balakrishnan said diesel prices had gone up by nearly Rs 8 per litre since May 15, and the daily revision in rates was severely affecting the transportation sector.
“We are urging the Union government to increase diesel prices in one go instead of revising them every day. The daily revision affects our sector badly. Freight charges are fixed based on the diesel price on the day of booking. For example, the freight charge for a Delhi-bound truck from Chennai is fixed based on today’s diesel price. If the diesel price increases by Rs 3 or Rs 4 by the time the truck reaches Delhi, who will bear the additional cost?” he told DT Next.
He added that apart from the rise in diesel prices, the cost of lubricants and tyres had also increased sharply by 10 to 20 per cent, while toll charges continued to rise annually.
R Punnaiappan, general secretary of the Koyambedu Wholesale Food Grains Market Association, warned that the increase in transport costs would soon lead to a spike in prices of essential commodities.
“The impact will be felt in the coming days when prices of essential food items increase due to higher freight charges passed on to retail shops,” he said.
Meanwhile, the Chennai Tourist Vehicle Operators Association urged the Union government to roll back the fuel price hike, stating that the increase had severely affected the tourism transport sector and the general public.
The impact will be felt in the coming days when prices of essential food items increase due to higher freight charges passed on to retail shopsR Punnaiappan, general secretary, Koyambedu Wholesale Food Grains Market Association
In a statement, association president T Anbazhagan and general secretary D Sukumar said petrol and diesel prices had been increased in four phases over the past 10 days, with petrol being sold at Rs 107.77 per litre and diesel at Rs 99.55 per litre.
They said the tourism sector was already reeling under the impact of reduced international travel following the Gulf conflict, which had led to a sharp reduction in flight operations and a decline in the arrival of foreign tourists.
“As a result, the revenue of tourist vehicles has dropped drastically. Several lakh people dependent on this sector have lost their livelihood. The Union government should reconsider the fuel price hike and immediately roll back the increase,” the statement said.