Winning Bizness Desk
Mumbai.Transport operations across India are slowing down as rising diesel prices begin hitting the backbone of the country’s supply chain. Nearly 19 lakh trucks have reportedly gone off the roads after transporters found it difficult to manage mounting fuel expenses. The development is now threatening to push up the prices of vegetables, fruits and daily-use grocery items in the coming days.
Freight burden rises across major routes
According to a report by The Economic Times, nearly 20% of India’s 95 lakh trucks are currently parked due to expensive diesel and supply-related pressure. Transport companies have already increased freight charges by 10% to 15% on key routes connecting western and northern India.
Local transport services within 30 kilometres are also becoming costlier, adding pressure on retailers and consumers alike. Industry experts say the impact will soon be visible in kitchen budgets across cities and towns.
Fuel hikes trigger panic at pumps
Oil companies have increased petrol and diesel prices four times in the last 11 days. The cumulative hike now stands at around Rs 7.5 to Rs 8 per litre.
The situation on highways is becoming difficult:
- Long queues of trucks are being seen outside petrol pumps
- Several drivers are waiting six to eight hours for diesel
- Retail fuel outlets are struggling to meet sudden demand
Small transporters face cash crunch crisis
India’s transport sector is heavily dependent on small operators, who own more than 70% of the trucks. All India Motor Transport Congress National President Harish Sabharwal said diesel alone contributes 40% to 45% of a truck’s operating cost.
He said many fuel stations have stopped giving diesel on credit, leaving small transporters struggling with working capital shortages. Several operators have temporarily suspended services to avoid losses.
Industrial diesel rates worsen supply pressure
The crisis has deepened after bulk diesel became Rs 40 to Rs 42 costlier per litre than retail diesel. The government had recently increased industrial diesel prices by Rs 22.
Because of this:
- Large institutions are now buying diesel from retail pumps
- Public fuel stations are witnessing unusual rush
- Supply gaps are emerging in several regions
Oil firms deny nationwide diesel shortage
Government-run oil companies, including Indian Oil Corporation, have denied reports of a nationwide fuel shortage. They said diesel sales have increased by 18%, while petrol sales rose 14% in recent weeks.
The companies maintained that shortages are limited to select areas and are temporary in nature. Officials also expressed hope that diesel demand would ease with the arrival of the monsoon season, especially from agriculture and tourism sectors.
