The Hindu Business Line : Diesel hike pushes truck rentals up in NCT

There has been a 10-15 per cent increase in truck rentals in the Capital territory, as against the seven per cent increase in diesel cost last week.

TRUCK rentals in the national capital territory (NCT) have moved up disproportionately following the recent diesel price hike.

While the light truck rentals have shot up by 10-15 per cent in Delhi, those in Ghaziabad, Faridabad and Gurgaon, operating on a 40-50 km local range, have seen a jump of 15-20 per cent, said a report.

This follows a seven per cent hike in diesel price that came about on September 6, it added, pointing out that diesel constitutes 65 per cent of the light truck owner's operating cost.

The state-owned oil companies hiked diesel prices by Rs 2 per litre, with diesel cost touching Rs 30.45 per litre in Delhi, against Rs 28.45 per litre.

The operating cost of 2.5-tonne-payload light trucks has gone up by Re 1 per quintal after the Rs 2 per litre hike in diesel price. But, retail rentals per quintal moved up by Rs 5 per quintal, according to Indian Foundation of Transport Research and Training (IFTRT), an independent body that tracks road transport and automotive industry.

From a petrol consumption per day perspective, the hike has increased the daily operating expenses of a goods vehicle by Rs 30-35 in Delhi, said IFTRT.

This is because light goods vehicles ply 80-100 km per day, on an average, consuming 16-20 litres of diesel.

However, various tempo unions/stands in the city at trading and industrial centres have jacked up the per trip rental by Rs 50-75, resulting in a hike of Rs 100-150 per day (at two trips of 30-40 km each per day average) in their rentals.

This has meant a 10-15 per cent increase in truck rentals in the city as against the seven per cent increase in diesel cost last week.

As per the IFTRT survey, a light truck, post diesel price hike, is available at Rs 525 for a distance of 30 km as against Rs 450 before the diesel hike.

Similarly, the trucks, engaged in movement of construction material, have jacked up their rentals by 15-20 per cent.

The IFTRT resource persons collected transport rental data from different locations in the NCT of Delhi, including the fruit and vegetable wholesale markets.

The data was collected for intra-NCT transportations, and not for across States and trunk routes.

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