The cost of transporting goods across India will rise by up to 3% due to the recent increase in diesel prices in view of the West Asia crisis, the All India Transport Welfare Association (AITWA), which represents around 65% of organized logistics service providers, said on Friday.
The road transport industry, which serves as the backbone of the country’s supply chain and economic mobility, relies heavily on diesel and petroleum-derived products for its operations, said Ashok Goyal, National President, AITWA. “In view of the cumulative increase in operational costs and the current rise in diesel prices, carriers have no choice but to partially shift the burden to customers. We expect cross-segment freight rates to rise by about 2.5-3% immediately,” he said.
AITWA said the government’s postponement of fuel price increases for several weeks has provided significant support to the nation, businesses and consumers. However, he highlighted that the transportation industry has already been under tremendous cost pressure over the past few weeks. AdBlue®/urea prices used in BS-VI vehicles have risen by more than 50%, while tyres, lubricants, tolls and other operational inputs have also gone up significantly.
The association said that it is working to promote and work on switching to electric fuel and other alternative fuels.
He also said that uninterrupted availability of fuel remains crucial to maintaining smooth logistics operations across the country.
He added: “We are working with the government and relevant authorities to ensure continuous fuel supplies and avoid interruptions, as uncertainty and supply shortages lead to increased costs and reduced operational efficiency across the logistics system.”
