The Central & State Governments that the continual hikes in fuel prices be avoided and it should consider lowering of Tax Rates to ward off the cascading impact of inflation on the people of the country
INVC NEWS
New Delhi ,
The Road Transport Sector of India is the “LIFELINE OF THE COUNTRY” providing “ESSENTIAL SERVICES” to the “COMMON MAN” and is the “BACKBONE OF THE ECONOMY”, which has been amply substantiated during corona lockdowns.
The road transport sector is the most worried lot due to continual escalation of fuel prices in the country. The retail prices of petrol have already crossed the psychological benchmark of Rs 100 per litre in some states and diesel prices too nearing the century mark. This is the seventh increase in prices since the ending of a four-and-half-month long hiatus in rate revision on March 22. In the first four occasions, prices were increased by 80 paise a litre – the highest single-day rise since the daily price revision was introduced in June 2017. There is all out resentment among the Transport fraternity of India and the People of the country against the consistent and exorbitant hike in diesel and fuel prices by the OMCs after 137 days control-order by the Government.
Continual Diesel Prices Hikes making Transport Operations Costly, May lead to increase in Transport Costs. The Government must Intervene to COntrol Fuel Prices as it did during Election Times
Rates have been increased across the country and vary from state to state depending upon the incidence of local taxation. The Centre taxes Rs 32.9 per litre on petrol and Rs 31.8 per litre on diesel, constituting 31 per cent and 34 per cent of the current retail prices of petrol and diesel. Rest is the State VAT that varies from state to state.
1.0) It is indeed back-breaking for the transport sector as about 70% is the component of diesel in the operating costs.
2.0) The continual hikes in diesel prices has set on a highly inflationary situation with the transport operating cost going up spirally.
3.0) The small operators will be worst impacted as the freights do not commensurate with the daily increase in diesel price which immediately increase the transportation costs.
4.0) The hike in fuel prices will lead to rise in prices of essential commodities, and prices of other commodities, much to the chagrin of the common man of India and the transport fraternity.
5.0) The Government in citing increase prices of international crude oil as the key reason for fuel price hikes, but it is also well known that the cheap crude is being bought by the Government from Russia. Then why this increase?
The historic hikes in Diesel Prices are destroying the road transport sector by making their operations further unviable and loss making. Unable to sustain the CASCADING IMPACT OF THE HIGH INFLATION, WEAK DEMAND, ALL OUT CORRUPTION, DIESEL HIKES, the entire road transport sector is struggling to survive. There has been multi-fold increase in NPAs resulting in acute loss of livelihoods. But now the diesel price hikes has broken the back of the road transport sector.
