BENGALURU: Truck operators in Karnataka are likely to raise freight charges by at least 10% after diesel prices increased for the fourth time by a total of Rs 7.81 per litre over the last 10 days, while petrol rose by Rs 7.97 on Monday.
The hike would impact vegetables, essential commodities, plywood, iron and others.
While agriculture sector representatives anticipate a 50 paise per kilo rise in produce prices from June.
According to the oil dealers association, fuel prices in Bengaluru now stand at Rs 110.93 for petrol and Rs 98.80 for diesel.
Speaking to TNIE, GR Shanmugappa, president of the Federation of Karnataka State Lorry Owners and Agents’ Association and Retail Transport Contractors’ Association said transporters have “no other option” but to increase freight rates as fuel costs continue to rise. “Whenever diesel prices increase, transport costs automatically go up. We cannot avoid it,” he said.
He said a meeting of transport operators has been convened on Wednesday to decide on the extent of the hike, adding that a 10% increase in freight charges is being considered in line with the recent rise in diesel prices.
“Out of every Rs 100 spent on diesel, nearly Rs 46 goes towards taxes including excise duty and state levies,” he further stated, urging the government to reduce taxes on fuel. The operator further claimed that transporters contribute substantial revenue through taxes and GST but receive no direct relief despite rising operational costs.
“We are anticipating another hike in petrol and diesel prices in the coming week,” said Ramesh Chandra Lahoti, Advisor of Agricultural Produce Market Committee. “Naturally, logistics costs will increase and by the first week of June, consumers can expect at least a 50 paise per kilogram increase at retail level,” he said.
“Transport and logistics operators have already begun discussions on revising freight charges and logistics is the costliest part of the procurement,” Lahoti added.