Members of the Chandigarh Transport Association have implemented a 10% [1] increase in freight rates to offset rising operational costs.
This price adjustment affects the movement of goods across the region, potentially increasing the cost of consumer products as transporters pass fuel expenses to clients.
Transporters said the decision follows consecutive hikes in petrol and diesel prices in May 2024 [1, 2]. According to a member of the Chandigarh Transport Association, diesel now accounts for 60% to 70% [1] of total operational costs per trip. Beyond fuel, the association cited higher expenses for tolls, green taxes, and tyre maintenance as primary drivers for the rate hike.
"Transport operators have announced an increase in freight charges following a rise in fuel prices," the All India Transporters Welfare Association said [2].
While freight operators move forward with these increases, the local government is maintaining a different stance for passenger transport. A UT spokesperson said there will be no increase in taxi or aggregator-cab fares despite the fuel price hike [3]. This creates a divide between the commercial logistics sector and the public transit sector regarding how to handle inflation.
The transporters maintain that the current cost structure is unsustainable. With fuel prices remaining volatile, the 10% [1] increase is viewed as a necessary measure to keep fleets operational and maintain vehicle safety standards.
“Diesel now accounts for 60 to 70 percent of our total operational costs per trip.”
The divergence between freight rate increases and frozen taxi fares suggests a tension between market-driven logistics and regulated public transport. While transporters are absorbing fuel volatility through direct price hikes, the government's refusal to allow cab fare increases may lead to decreased availability of ride-sharing services or financial strain on small-scale driver-owners.
