In order to curb under recovery in diesel , the government has hiked its price by RS. 5 per liter with effect from 14th September 2012 all over India. However, the negative outcomes rising due to such hike have been totally neglected. The foremost adverse effect which is seen from such hike is the inflation in commodity prices. As the Logistics and transportation sector is mainly depends upon diesel without being exposed to any other alternative cheaper fuel, hence, the freight charges will have to be raised from existing levels to a conservative level I, e. 09-11% upwards considering price in HSD and the cascading effects of rise in other commodities such as Lubricants, tyre, grease, etc.
The present business system of India will automatically tune this 09-11% increase in freight to a very excessive increase in the commodity prices. Consider being more worse, the ultimate effect of such price increase will be bear by the pocket of consumers who are already helpless to bear the existing price burden of daily essentials.
All India Transporters welfare Association (AITWA), on behalf of whole road transport fraternity hereby condemns the price hike introduced in High speed diesel by RS. 5 per Liter and request the government to withdraw the same with immediate effect.
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