Date:23/06/2005 URL: http://www.thehindubusinessline.com/2005/06/23/stories/2005062301501700.htm
Back Truck operators in TN oppose diesel price hike

R.Y. Narayanan

Coimbatore , June 22

TRUCK operators in Tamil Nadu have demanded that the Union Government roll back the increase in diesel price, as it will push up the cost of transport operations that the industry could not bear.

Though the Government had announced a hike of only Rs 2 per litre of diesel, the actual increase at retail level has been nearly 40 per cent more in view of the Central and State levies, they said.

Speaking to Business Line from Namakkal, Mr P. Sengodan, President, Tamil Nadu Lorry Owners' Federation (TNLOF), said the latest hike has come at a time when the transport sector is facing a series of problems ranging from fierce competition among the fleet operators themselves, raise in transport rates not matching the increase in operational costs, vehicles idling for long periods due to lack of demand and so on.

He said though the Government had hiked the diesel price by Rs 2 per litre, the actual increase was about 40 per cent more; the hike in price was Rs 2.75 per litre at the retail level in Namakkal. Despite the euphoria about industrial revival, the transport vehicles were engaged only for about 20 days in a month.

The fleet owners were faced with the prospect of either leaving their vehicles idle or accept hire rates that hardly met the cost of operations.

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