Daily fuel price hike may push up freight charges by 20%, say truckers

Demanding monthly or quarterly revision in diesel prices, which saw an increase for 23 days on the trot last month, a truckers body on Sunday warned that transporters may be forced to increase freight charges by 20% as the daily hikes in fuel prices are making operations “unviable”.

Fuel charges account for as much as 65% of the operating cost of a truck. Toll charges are another major component, which is about 20% of the operating cost.

“Already the demand is low and the idling of the vehicles (trucks which are off-road) is at about 55%. It has become difficult to sustain operations. The road transport sector is devastated due to back-to-back lockdowns amid COVID-19,” Bal Malkit Singh, chairman core committee and former president of All India Motors Transport Congress (AIMTC) said in a statement.