New Delhi6 minutes ago
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The shortage of diesel and rising prices in the country is causing a double blow to the transport sector. Due to rising expenses, transporters have started parking trucks. The situation is that out of total 95 lakh trucks in India, about 20% i.e. 19 lakh trucks have gone off the roads.
According to the report of Economics Times, the effect of increase in crude oil prices in the global market due to Iran war is now visible on India’s supply chain. Due to shortage and high prices of diesel, transport companies have increased the freight charges. There has been an increase of 10 to 15% in fares on main routes like West to North India.
The prices of local transport up to 30km have increased even more. This will have a direct impact on the pockets of the general public, because the prices of fruits, vegetables and ration may increase in the coming days.
Prices increased by ₹8 in 11 days, long queues at petrol pumps
Due to rising crude oil prices, government oil companies have increased the prices of petrol and diesel 4 times in the last 11 days, taking the total increase to ₹7.5 to ₹8 per litre. Long queues of trucks are being seen at petrol pumps on the National Highway.
Problems of small operators increased
More than 70% of India’s transport sector is comprised of small truck operators. Harish Sabharwal, National President of All India Motor Transport Congress, said that diesel alone accounts for 40-45% of the total expense of running a truck. Small operators are no longer in a position to bear the burden of the increase in oil prices. Many pumps have stopped providing oil on credit, leading to a working capital crisis.
Crowd at pumps increased due to cost of industrial diesel pumps
There are two types of prices of diesel in the market – bulk and retail. Diesel available in bulk has become costlier by ₹ 40-42 per liter compared to retail, recently the government had increased the price of industrial diesel by ₹ 22.
In such a situation, the big institutions which earlier used to buy oil in bulk, are now crowding the petrol pumps accessible to the general public. Due to this, the supply at retail outlets is falling short and trucks have to wait for 6 to 8 hours.
Oil companies said- shortage is only local
Government companies like Indian Oil (IOC) have denied the shortage of oil across the country. Companies say that sales of petrol have increased by 14% and diesel by 18%. According to him, the shortage is only in some selected areas and it is temporary. With the onset of monsoon, the demand for farming and tourism will reduce, which is expected to improve the situation.
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