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Sunday , June 26 , 2011
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Road freight rates rise on diesel hike

Chandigarh, June 25 (PTI): Transporters today said they would raise freight rates by 8-9 per cent with immediate effect on all routes across the country on the back of the hike in diesel rates yesterday.

“Freight rates will be raised by 8-9 per cent for all routes from today because of the increase in diesel rates,” North India Motor Road Transport Association (NIMRTA) president Charan Singh Lohara said.

Singh is also a senior member and former president of the All India Motor Transport Congress.

The impact of the increase in freight rates will be visible on transportation of all kinds of goods, including perishable commodities such as vegetables and industrial items, he said.

“The new booking of orders will now be done on the basis of the increased rates,” Singh said.

Freight rate from Ludhiana to Mumbai will increase by Rs 2,000 to Rs 24,000. Similarly, freight rates on other routes will also be increased.

According to Lohara, there are over 60 lakh trucks running across the country, playing a vital role in transporting goods from one part of the nation to the other.

The Centre yesterday hiked diesel prices by Rs 3 a litre along with the increase in kerosene and LPG by Rs 2 per litre and Rs 50 a cylinder, respectively.

Transporters said a hike in diesel prices would adversely impact their business. “Our input cost has already risen substantially in the last one year because of rising tyre prices, surging toll taxes and insurance cost. Now increase in diesel rates will further hit our businesses,” said Ludhiana-based transporter Sarabjit Singh.

Oil reserves

Tapping of emergency oil reserves by the International Energy Agency for the third time in history will not have the same negative impact on prices as it has in the past because of surging Chinese demand and supply outages in Libya.

US crude has already rebounded from the initial shock of Thursday’s announcement, briefly rising more than $1 to above $92 on Friday.

“It will have some transient impact, but in the big picture this is a little political thing and it will be a little hiccup in the market and then it will be gone,” said John Vautrain, director at Purvin & Gertz Energy Consultants.

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