SOURCE :- SIASAT NEWS
Bengaluru: Rising fuel prices have triggered fresh concerns among transport operators and vehicle owners across the country, with the South India Motor Transport Association (SIMTA) urging the Central Government to provide relief by reducing toll charges and Value Added Tax (VAT) for the next six months.
According to transport industry representatives, repeated increases in petrol and diesel prices over the past few days have significantly raised operating costs, putting pressure on transport businesses already dealing with high maintenance and logistics expenses.
Letter to PM
The association has reportedly written to Prime Minister Narendra Modi seeking immediate intervention and warning that freight charges may have to be revised upward if relief measures are not introduced.
Transport operators say the increase in fuel prices has severely affected profit margins, especially for truck and lorry owners who depend heavily on diesel. Industry stakeholders argue that continued increases in fuel costs are making it difficult to sustain existing transportation rates.
Shivashankar, a transport operator, said the cost of moving goods has risen sharply due to higher diesel prices. He noted that transportation charges that were previously viable are no longer sufficient to cover operational expenses, forcing transporters to consider revising freight rates.
Industry representatives warn that if the trend continues, transport companies may have little option but to pass the additional burden on to customers.
Concerns of growinng inflation
The transport sector’s concerns have raised fears of a broader inflationary impact. Wholesale traders and market experts believe any increase in freight charges could eventually lead to higher prices for essential commodities, including food grains, vegetables and other consumer goods.
Wholesale trader Annoji Rao said transportation forms a critical component of supply-chain costs. If freight rates rise, the increased expenditure is likely to be reflected in retail prices, ultimately affecting consumers across urban and rural markets.
Experts point out that logistics costs influence nearly every sector of the economy, meaning sustained fuel price increases could have a cascading effect on the prices of numerous goods and services.
In its representation to the Centre, SIMTA has reportedly sought temporary reductions in toll fees and VAT to offset the financial burden created by rising fuel costs. The association believes such measures would help transport operators absorb part of the increased expenditure without immediately raising freight charges.
Transporters seek six-month relief package
Transporters argue that a six-month relief package would provide much-needed stability while global energy markets remain volatile.
Economists note that transportation is the backbone of supply chains, and any rise in logistics costs eventually reaches end consumers. If freight rates increase, the prices of daily essentials, construction materials, agricultural products and manufactured goods could also move upward.
Rising fuel prices remain key concern
With fuel prices remaining a key concern for both businesses and households, attention is now focused on whether the Central Government will introduce measures to cushion the impact on the transport sector and prevent a wider rise in consumer prices.
The coming weeks are expected to be crucial as transport associations, industry bodies and policymakers assess the economic implications of rising fuel costs and explore possible solutions to protect both businesses and consumers.
SOURCE : SIASAT
