New Delhi, Sept 24: Truck hire charges are likely to go up by 8-12 per cent in view of the Rs 2.22 per litre increase in diesel prices since June. "Cumulative diesel price hikes (June 2 to September 15), tyre prices, motor insurance and motor vehicle taxes/fee would neccessiate 8-12 per cent increase in truck hire charges in the next fortnight as truckers organise themselves to pressurise the transport companies/contractors to increase hire rates," the Indian Foundation of Transport Research and Training (IFTRT) said in a study. While the last diesel price hike of Rs 0.34 per litre was enforced on September 15 after a similar increase on August 31, the latest volatility in the international crude prices has flared up the prices to brent $ 30.41 a barrel as against $ 26.80 a barrel in second fortnight of August. "This has prepared the domestic transport industry for yet another heavy doze of hike in diesel prices as oil companies had indicated to pass on the burden in order to bring import price parity," the study said.
Stating that ministry of finance and state governments had put up exorbitant duties on petroleum products that constitute almost 40 per cent of the diesel prices at the retail outlet, IFTRT said reduction in excise duty on petroleum products as against increase in import duty on crude oil may reduce the diesel price hike impact next week.
The September 15 increase in diesel price translates in a 2.5 to 3.6 per cent increase in truck hire charges, it said.
Bureau Report