Financial Daily from THE HINDU group of publications
Friday, Jul 08, 2005
Truck rentals go up in Delhi
New Delhi , July 7
FOLLOWING the recent 7.5 per cent diesel price hike, truck rentals in Delhi have moved up disproportionately by 15-20 per cent.
Incidentally, the truck rentals of trunk routes have moved up by about six per cent only after the diesel hike, according to Indian Foundation of Transport Research and Training (IFTRT).
Based on transport rentals data collected from different locations within Delhi, the research body that monitors road transport and automotive industry has said that while increase in prices of diesel, tyre and auto parts together result in about 10 per cent increase in input costs, the truck rentals have increased by 15-20 per cent.
"The truck-tempo local rentals in Delhi have been raised in highly disproportionate manner in relation to the input cost increase," it said.
However, on studying the medium and long haul rentals across the country (except for the Western region since the region has been witnessing disruptions due to floods), the research body has found that cargo rate hikes have just about caught up with the increase in diesel rates. "The trunk routes do a daily mileage of about 200-250 km and thus are more likely to be affected by the diesel price hike," said Mr S.P. Singh, Senior Research Fellow, IFTRT.
This could also be explained due to the fact that during monsoon, cargo availability is inconsistent, he added.
The light goods vehicles (LGVs) in Delhi, on an average runs 80-100 km per day while consuming 16-20 litres of diesel.
Thus, the Rs 2 per litre hike has increased the daily operating expense of a goods vehicle by Rs 32-40.
In addition to this, the operating expenses on tyres, auto spares and battery maintenance has gone up by Rs 15-20.
Thus, the combined impact of diesel and these items on operating cost has increased by Rs 43-58 per vehicle per day. On an average, a light truck/tempo is able to carry out two local trips a day ranging 30-40 km distance per trip, said IFTRT.
However, various tempo unions in the city at trading and industrial centres have jacked up the per trip rental by Rs 80-100, thereby, injecting increase of Rs 160-180 per day in the rentals.
The oil companies hiked diesel prices by Rs 2 per litre on June 21.
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