Diesel price hike 7pc, truck rentals increase by 10-15pc

New Delhi, June 9: Truck rentals in the national capital have shot up by about 15 per cent even as the hike in diesel prices was 6.7 per cent.

A survey by Indian Foundation of Transport Research and Training found that even as cost of diesel increased by Rs two a litre (6.7 per cent), tempo unions jacked up lorry rentals by Rs 50-75 (about 15 per cent), thereby accentuating the affect of the fuel price rise.

It also found that whereas cost of CNG had increased by Rs 1.20 a kg (two per cent), CNG-propelled three-wheeler goods carriers had moved up their rentals by Rs 25-30 (about ten per cent) Diesel-run Light Goods Vehicals in the city on an average ran 80-100 km a day, consuming 16-20 litres of diesel and the fuel constituted 65 per cent of the light truck owner's operating cost.

Thus, the Rs two per liter hike had increased the daily operating expenses of a goods vehicle by Rs 30 to Rs 35.

On an average, a popular 2.5 ton payload light truck/tempo was able to carry out two local trips in a day ranging 30 to 40 km distance per trip. However, various tempo unions/tempo stands in the capital at trading and industrial centres had jacked up the per trip rental by Rs 50 to Rs 75, thereby, injecting an increase of Rs 100 to Rs 150 per day in their rentals.

This had resulted in about 15 per cent increase in truck rentals/ freights in the city as against 6.7 per cent increase in diesel cost this week.

According to the study by IFTRT, an independent organisation monitoring the Road Transport and Automotive Industry, truck/tempo local rentals in Delhi had been raised in a concerted and highly disproportionate manner in relation to the input cost increase.

A light truck, post diesel price hike, was available at Rs 625 for a distance of 30 km as against Rs 550 last week. But, the trucks, engaged in movement of construction material, had jacked up their hire charges/rentals by 15 to 20 per cent after the Rs two per litre diesel price hike.

Similar was the case of cement transportation within the city as the cement distributors at Shakurbasti Railway Cement siding were now charging 50 paise more as transportation charges on a 50 kg bag of cement.

In Azadpur (wholesale) Sabzi Mandi, where work was distributed in three areas -- vegetable market, fruit market and Banana siding, almost 4,000 to 5,000 goods vehicles were engaged in movement of fruit and vegetables. The operating cost of 2.5 ton pay load light trucks had gone up by Rs one per quintal after the increase in diesel price. But retail rentals per quintal had been raised by Rs five per quintal in the last three days.

This had directly increased the transportation cost of fruit and vegetable to retailers in the city from wholesale Azadpur Sabzi Mandi and Okhla Sabzi Mandi by Rs one on 15 kg fruit crate and similar impact was felt on a 15-30 kg vegetable bag.

The Mother Dairy, Delhi Milk Scheme (DMS) and Amul had not increased the Milk and Milk Product prices although these milk producers had compensated the dedicated vendors (truck operators) for the increase in their operating cost on account of latest diesel price increase.

Similarly, Indraprastha Gas Ltd had also increased truck rentals to its dedicated vendors (truck operators) in the city due to diesel price hike.

The increase in CNG fuel price by Rs 1.20 per kg had also given an opportunity to three-wheeler load carriers (running on CNG fuel) to increase their rentals/freightage per trip by over ten per cent as against meagre two per cent weighted impact of CNG fuel increase on their operating cost.

For a three-wheeler operator, the per km impact of CNG price hike was only six paise per km as per the fuel efficiency of this CNG vehicle and Rs 18 on an average 30 km trip in the city, but these three-wheeler carriers were demanding Rs 25 to Rs 30 extra per trip on a freightage of Rs 250 that came to about ten per cent hike in rentals charged by them.

UNI