Diesel price hikes hit truckers; overall operational costs jump 20%

Truckers are demanding reduction in taxes on fuel prices, as a tremendous rise in fuel prices in recent months have drastically escalated their operational costs.

A glance at the daily fluctuating price chart of diesel shows that since January 1 till Monday, diesel prices have increased in the range of 21% to 24% in the four metropolitan cities of Delhi, Mumbai, Kolkata and Chennai.

In the national capital, the per litre price of diesel was Rs 59.70 on January 1, which is now sold for Rs 73.78, a 23.58% increase. Similarly, in Mumbai, there has been a 23.64% rise from Rs 63.35 to Rs 78.33 a litre during the same period. In cities like Kolkata and Chennai, the price has increased by 21.27% and 24%, respectively. On Monday, the per litre price of diesel was being sold for Rs 75.63 and Rs 78 in these two cities, respectively.

Watch This Zee Business Video Here:

Though the spike in fossil fuels is due to ‘global factors’, the truckers are of the opinion that domestic factors too are responsible for high fuel prices.

“There is an all out increase in diesel prices across the country. In spite of our eight days strike in which diesel hike was one of the important issues, the government still remains adamant and is not cutting central excise or the state taxes as well as reducing their value added tax,” said Bal Malkit Singh, chairman (Core Committee), All India Motor Transport Congress (AIMTC).

Another trucker whom DNA Money spoke to shared that the overall operational costs have increased by as much as 20% during this calendar year itself and they have no other alternative but to pass on the additional burden on to the customers.

On Monday, Karnataka was the fourth state to take the initiative of reducing state taxes. Earlier, three states Andhra Pradesh, Rajasthan and West Bengal. Karnataka had cut excise duty on petrol and diesel by Rs 2.

However, all other states continue to levy heavy taxes to fill their coffers despite the central government earlier this month having aired a similar view on the tax cuts.

“Maharashtra is a neighbouring state, we request the government of Maharashtra not to be left out and take a cue from the Karnataka government and provide relief to the common man and transport fraternity,” added Singh.

On Monday, Petroleum and Natural Gas Minister Dharmendra Pradhan too expressed concern over the continuous rise in fuel prices by stating that petrol and diesel should come under the ambit of Goods and Services Tax (GST). “I want petrol and diesel to come under the ambit of GST. The GST Council should take a decision on this. State governments are more powerful than the Centre in the GST Council meeting,” said Pradhan.

A similar demand has been raised by the truckers’ lobby too, for which they went on an indefinite strike in July this year. However, the strike was called off on the eight day after they received assurance from the government.

Now, if the fuel prices aren’t brought under control, one may witness another round of agitation from this section of the logistics chain. The truckers would be meeting on Friday to decide on their future course of action on how to pressurise the government to meet their demands.

While briefing the media, Pradhan went on to say that the union government had already reduced excise duty in October 2017. “Excise duty is fixed. If oil prices go up in international markets, the states benefit more and this information is now in the public domain. I had put out the facts about how the states use to earn less than Rs 3,000 crore during 2014, now they can earn about Rs 7,000 crore. So, now the onus is on the state to reduce taxes,” he said. Thus, the next round of agitations would be more against the state governments rather than the central government.