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Truckers to up rentals 6 to 12%

July 03, 2009 08:48 IST

The increase in diesel prices has raised truckers' operational costs 4 to 8 per cent, depending on the age and make of the truck. Diesel and tyres constitute 90 per cent of a truck's operating expenses on inter-state operations. Truck transport accounts for 78 per cent of good transported across India.

Transport research agencies that track truck rentals on a daily basis said truck booking agencies in Delhi have already increased rentals around 6 per cent from Thursday.

UPHILL DRIVE
(Key rates after the oil price rise)
Route Earlier Today % increase
Delhi-Mumbai-Delhi 33,500 35,500 5.9
Delhi-Guwahati-Delhi 62,800 66,400 5.6
Delhi-Chennai-Delhi 55,200 58,000 5.1
Delhi-Raipur-Delhi 29,700 31,600 6.0
(Figures in Rs)                                                Source: IFTRT
 

The rest may follow next week. "Truck rentals might go up 10 to 12 per cent probably from Monday," said Sanjiv Khanna, owner of a mid-sized Delhi-based transport company Delhi Modinagar Exp Transport.

There are doubts, however, whether truckers will be able to sustain this price rise. "How much the market, which is already in the midst of a slowdown, will be able to sustain this rise remains to be seen," said S P Singh, coordinator, Indian Foundation of Transport Research and Training.

Operators agree. "With diesel prices going up, operational costs have increased but the rise in rentals may not be huge owing to the slowdown in demand, " said Chiranjeet Singh, president, All India Motor Transport Congress, a truckers' association. 

"Input costs have gone up, but a rise in prices will depend on market forces," added Chittaranjan Dass, vice-president of another truckers' lobby, the All India Confederation of Goods Vehicle Owners Association.

Truck rentals dropped 4 to 6 per cent over the May 6 to June 5 period on trunk routes owing to sharp declines agri-produce cargo and the tapering off the wheat procurement season.Agri-produce accounts for over 40 per cent of goods transported by truck.

Mihir Mishra in New Delhi
Source: source image