Transporters seek 10% freight hike amid rising fuel prices, industries fear higher production costs

Rising fuel prices across the country have triggered concerns in major industrial hubs such as Ankleshwar, Panoli, and Jhagadia, which fear a sharp increase in production costs due to higher transportation expenses for raw materials and finished goods.

Transport companies have reportedly demanded nearly a 10% hike in transportation charges from industries owing to the continuous rise in fuel prices. Industrialists said repeated increases in diesel prices over the past few days have significantly raised the operational costs of trucks, tankers and cargo vehicles.

As a result, the cost of transporting raw materials to factories as well as dispatching finished products within and outside the state has increased considerably.

Transporters have clarified that it has become difficult to continue operations at existing freight rates amid rising fuel prices, toll taxes and maintenance expenses.

Leaders associated with the transport sector said the constant hike in diesel prices has increased the financial burden on vehicle owners and transport companies, prompting many transporters to make written and verbal representations to industries seeking higher freight charges.

Industrialists fear that if fuel prices continue to rise in the coming days, transportation costs may increase further, directly impacting overall production expenses.

Meanwhile, industries are also facing issues related to power supply. With power companies imposing a weekly power cut, industries are being forced to operate diesel generators to continue production activities.

However, rising diesel prices and inadequate diesel availability have further added to the difficulties faced by industries. Several industrialists stated that the cost of running generators has now become a major component of overall production expenditure.