For the first time in years.. India raises diesel prices to save the “lifeline of the economy”
Truck fleet operators across India are bracing for the first increase in diesel prices in four years, in a move that would end a period of relative stability that has continued even with the ongoing war in the Middle East.
India, the world’s third-largest oil importer, is among the countries most affected by trade turmoil in the Middle East as the conflict enters its eighth week, but it has not seen significant rises inOil prices by government refiners could increase inflationary pressures weighing on the economy. Truck drivers already report widespread informal rationing that forces them to make frequent stops to fill up their fuel tanks, delaying deliveries.
Shailendra Gupta, executive member of the All India Road Transport Congress, a lobby group representing truck drivers, said: "We will see diesel prices rise after the election. Approximately 10% of the vehicle fleet is currently idle, and if fuel prices rise, this percentage could reach 30%."
He added that gas stations have canceled the discounts they previously offered on monthly purchases that exceed a certain limit.
India relies heavily on Land transportation of goods – trucks represent approximately 70% of freight traffic, so diesel is the lifeblood of the economy.
Private sector companies, such as… "Nayara" Energy, fuel prices, while the company "Reliance" Industries and its partners "baby" By rationing supplies.
However, any widespread increase in retail fuel prices, coupled with a weak exchange rate, will negatively impact the economy as a whole.
The Indian government urged citizens to avoid panic buying of fuel, and confirmed on Sunday that retail stations were operating normally. She added that there was no increase in the regular retail prices of gasoline or diesel.
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