The diesel price hike announced by the Government has already raised the operations cost of the transport sector, which is already reeling under the ever-increasing rates of toll and third party insurance premiums as well as the higher cost of tyres and lubes. Almost 70 per cent of the population in the country constitute single truck owners, and more than 85 per cent of those engaged in the trucking community are helpers, labours, mechanics, etc., who all are an inalienable part of the common people.
In a press release, the All India Motor Transport Congress (AIMTC) has stated that the Government decision will have the greatest dampening effect on the economy, apart from increasing the all-round inflation. There is growing concern over the deteriorating condition of transporters who are already hit by the high cost of operation.
The release further states that the current hike of 12-14 per cent in diesel prices by the Government is intended to bring the budget deficit under control and win back the trust of foreign investors. However, the hike has been effected at the cost of the common man. The fiscal deficit could be controlled by alternative means and by containing scams involving crores of rupees.
The road transport industry which will not be able to absorb the hike in diesel prices suggests that the Central and State Governments reduce the excise and customs duty as well as VAT on diesel, all of which constitute 50 per cent of the fuel cost.
According to AIMTC, the Goa Government has taken a prudent decision to adjust its taxes in the interest of the common man. “We have time and again demanded that there should be uniform diesel price across the country. A correction in diesel price across the country should be made and its price should not differ from State to State”.
The decision to hike diesel prices has already unleased uncontrollable inflationary forces, resulting in all-round increase in the prices of all essential commodities. The Government move would seriously retard the already slack pace of economic growth. The road transport fraternity strongly condemns and deplores the stand taken by the Government and demands its review and a further cut in Central and State taxes, the release adds.