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Rising diesel price may push up cost of supplies: transporters

In Mumbai, the price of diesel is more than what it costs in other cities. The fuel costs Rs 67.05 per litre in Bengaluru, in New Delhi, it costs Rs 65.75, in Bhopal, the price is Rs 69.38 a litre. In Kolkata, it costs Rs 68.63 per litre.

By: Express News Service | Mumbai |
April 25, 2018 5:51:19 am
petrol prices, fuel price hike, petrol price rise, fuel price hike, indian express, spike in fuel prices, finance ministry The price of petrol, pegged at Rs 82.48 a litre in Mumbai on Tuesday, has seen an increase for the past two months.  (Representational Image)

IN THE wake of rising diesel cost, goods transport associations have complained that it has increased the operation cost of ferrying goods. Representatives of associations said they might have to increase the cost of items supplied if they start incurring losses in transactions.

On Tuesday, diesel prices in Mumbai were pegged at Rs 70.20 a litre. In the past two months, the price has increased by Rs 10 per litre, compared to the base fare of Rs 60, which transport associations said is affecting their businesses. Prices of supplies, however, have not been revised in a big way in the past two months, they said.

“Diesel constitutes almost 50 per cent of our direct cost and any hike in diesel prices will increase our costing. Since we are already working on meagre margins, we will be put to heavy losses if we do not pass the hike on to our customers. This will definitely impact the aam aadmi as costs of all items, including milk, fruits, vegetables, rice and wheat will go up, resulting in higher inflation,” Ashok Goyal, a committee member of the Bombay Goods Transport Association and MD of BLR Logistiks company, that owns over 400 trucks.

In Mumbai, the price of diesel is more than what it costs in other cities. The fuel costs Rs 67.05 per litre in Bengaluru, in New Delhi, it costs Rs 65.75, in Bhopal, the price is Rs 69.38 a litre. In Kolkata, it costs Rs 68.63 per litre.

“The government should reduce the excise duty on petrol and diesel, thereby earning a lower revenue but at least easing some burden on the consumers. There should be revision of diesel and petrol prices, quarterly. The government must also look to bring petroleum products under the Goods and Service Tax (GST) ambit,” Malkit Singh, the chairman, All India Motor Transport Congress, said.

The price of petrol, pegged at Rs 82.48 a litre in Mumbai on Tuesday, has seen an increase for the past two months.

Petrol associations agrees that the fuel must be brought under the GST’s ambit. “Bringing petrol under GST will regulate the costs, putting a cap on its maximum prices. As commuters are increasingly affected by fuel costs, delay in its regulation will generate negative responses towards the government,” Venkat Rao, the president of Mumbai Petrol Dealers’ Association, said.

 

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