May16 , 2026

    AITWA Flags Rising Logistics Costs After Diesel Price Hike, Freight Rates Likely to Increase

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    The All India Transport Welfare Association (AITWA), representing transporters and logistics operators across the country, has expressed concern over the recent increase in diesel prices by nearly 3–3.5% in several parts of India, stating that the move will significantly impact transportation and logistics costs nationwide.

    In a statement, AITWA said the road transport sector, which forms the backbone of India’s supply chain and economic movement, is heavily dependent on diesel and other oil-derived products for day-to-day operations. While acknowledging the prevailing global crisis and the larger national interest behind the decision, the Association stated that the industry is already facing severe cost pressures.

    AITWA appreciated the leadership of Narendra Modi and complimented the Government of India for delaying the fuel price increase for several weeks, which, according to the Association, provided substantial relief and cushioning to businesses, transporters, and consumers.

    However, the Association pointed out that operational expenses in the transport sector have risen sharply over recent weeks. It noted that prices of DEF/Urea used in BS-VI vehicles have surged by over 50%, while tyres, lubricants, toll charges, and other operational inputs have also recorded significant increases.

    “In view of the cumulative increase in operational costs and now the diesel price hike, transporters are left with no option but to partially pass on the burden to customers. Freight rates across sectors are expected to increase by around 2.5–3% in the coming period,” AITWA stated.

    The Association further emphasized that uninterrupted fuel availability is crucial to maintaining smooth logistics operations across the country. AITWA said it is in discussions with the Government and relevant authorities to ensure continuous fuel supply and prevent disruptions that could further escalate costs and inefficiencies within the logistics ecosystem.

    Highlighting its commitment to sustainability, AITWA stated that through its dedicated initiative, AITWA Green Grid, it has been actively promoting the adoption of electric and alternate-fuel commercial vehicles. The Association informed that several pilot projects and operational studies are currently underway to assess infrastructure readiness, operational viability, and sector-specific challenges linked to green mobility solutions.

    Reaffirming its commitment to the nation and economic stability, AITWA said it remains dedicated to ensuring uninterrupted logistics support during challenging global conditions.

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