Truck rentals for full truck load have gone up by up to 2-2.5 per cent to neutralise the additional impact of increase in diesel price by Rs 2.50 a litre from the mid-night of July 5, according to the Indian Foundation of Transport Research and Training, a transport tracking body.
This is after the imposition of Re 1 a litre road cess and over Re 1 hike in sales tax on diesel price in the Budget.
The open market load truckers and transporters have suffered most in the last three quarters – with a drop in truck utilisation – and truck rentals have dropped by around 14-15 per cent between November 2018 and June 2019.
The trucking business is passing through its most difficult phase for the last three quarters akin the situation in 2008-09 at the time of global financial meltdown.
IFTRT has alleged that the common carriers have raised their charges by 5 per cent a quintal instead of real impact of two per cent or less, which borders on profiteering at the expense of truckers and the economy.
Charges are up by a lower extent of 1.25-1.5 per cent for transporters who have contracts with factory owners, public sector units and corporates.
The direct adverse impact of the ongoing economic slowdown and poor consumer spending has been that repayment of EMIs to banks and NBFCs has touched a critical low due to large delinquencies.