BENGALURU: The South India Motor Transporters Association (SIMTA), representing truckers, transporters and passenger vehicle operators across south India, has urged Prime Minister Narendra Modi to provide immediate financial relief to the road transport sector in view of the sharp increase in diesel prices and worsening business conditions.
In the letter to Modi, the SIMTA said the transport industry was facing a severe financial crisis due to rising operational costs, declining freight earnings, excess vehicle availability and weak market demand. The association stated that diesel prices have increased by nearly Rs 7.5 per litre in the past 10 days alone, adding further pressure on transport operators already struggling with low freight rates.
The SIMTA said around 40–45% of commercial vehicles across the country are currently lying idle because of insufficient freight demand and imbalance between vehicle capacity and transportation needs. The association also cited the ongoing West Asia crisis and fuel supply uncertainties as factors affecting transport operations nationwide.
According to the association, nearly 60–65% of transport operation expenses are linked directly to diesel costs, while another 18–20% is spent on toll charges and statutory compliances. However, transporters are unable to pass on the increased fuel burden to customers owing to intense competition and weak freight markets.
The association, which represents transport bodies from Karnataka, Tamil Nadu, Kerala, Andhra Pradesh, Telangana and Puducherry, sought relief measures, such as waiver of toll charges and penalties for six months, exemption from National Permit fees, reduction in Value Added Tax (VAT) by state governments, waiver of motor vehicle taxes and introduction of financial assistance packages for transport operators.
The SIMTA also demanded that petroleum products be brought under the GST regime to ensure uniform fuel pricing and reduce taxation. The association warned that continued financial stress could affect supply chains and the livelihoods of lakhs of families dependent on the transport sector.