The Karnataka Small Scale Industries Association (KASSIA) has opposed the hike in diesel prices and stated that this will increase the operational costs, squeeze profits and push small-scale industries to struggle.
“Small-scale industries rely heavily on diesel for transportation, manufacturing and power backup solutions. With the price of diesel witnessing a steep increase, businesses are finding it increasingly difficult to manage production costs.
Many small enterprises operate on thin margins, and the rising fuel expenses are threatening their viability. The situation is further exacerbated by supply chain disruptions, inflationary pressures, and rising raw material costs”, the industry body said on Wednesday.
KASSIA urged the government to provide subsidies, reduce excise duties or implement policies that cushion the impact of fluctuating fuel prices.