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The Government should opt for a Re 1/litre hike in diesel prices a month if truckers are not to pass on the cost to consumers, says the Indian Foundation of Transport Research and Training (IFTRT), a transport research body.
A predictable smaller level of hike is better for the market, rather than a knee-jerk hike of Rs 3-5/litre, said IFTRT.
Since January, the Government has been increasing diesel prices by 50 paise/month for retail consumers.
“No doubt, the 50 paise/litre monthly diesel price hike since January 2013 has worked well because of its predictability, as its impact on truck freight has been moderate, against a sudden big single increase in price,” said IFTRT.
Incidentally, the All-India Motor Transport Congress (AIMTC), the largest transport union, has already demanded a sharp hike in diesel rates, because they are unable to pass on the costs to customers the smaller hikes of 50 paise, without taxes.
IFTRT further said that the “Government must...stick to monthly diesel price hike though it may increase the quantum moderately so that all stakeholders are saved from the chronic impact of the depreciating rupee and high crude oil prices.”
mamuni.das@thehindu.co.in
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