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Lorry freight booking rates up, prices of essential commodities to increase

Posted on: 25/Sep/2018 5:57:18 PM
As the trend of increase in diesel prices continues, the freight fares for lorries carrying goods have gone up by 22%. There is an apprehension that this may lead to an increase in the prices of essential commodities.

In this situation, the Executive Committee meeting of the Salem district Lorry Booking Agents Association was conducted on 16th September. During this meeting, a decision was taken to increase the freight fares throughout Tamil Nadu by 22%. It was also decided that this increase of 22% would be implemented from 24th September.

Subsequently, the booking agents throughout Tamil Nadu have announced the revision of freight fares increased by 22% with effect from yesterday (24th September).

The State President of the Tamil Nadu Lorry Booking Agents Federation, Raja Vadivel explained in this regard:

As compared to the last time when the freight fares were revised, presently, the price of diesel has gone up by Rs. 18 per litre further, the increasing trend in diesel price continues.

Because of this, the booking agents are constrained to give increase rents for the lorries booked. So, a decision to increase the freight rates by 22% had been taken and this has been informed to factory owners, industrial plants, Logistics Companies, and all others concerned.

Accordingly, the increased freight rates are in practice. However, the traders, factory owners, and others may not accept this 22% increase. However, they are well aware of the diesel prices. Hence, they have decided to pay the increased fright fares gradually in several stages. In fact, some of them have already started paying the revised freight fares. In case the diesel prices could not be checked and brought under control, the 22% increase will be shortly implemented in full.

Because of this, the prices of essential commodities such as rice and pulses will be up. So, the central and state governments must immediately switch the diesel price under the GST domain and reduce the prices. Further, they should discontinue the present system of daily price revision and fix the prices of petrol and diesel only once in 3 months.

As diesel prices shoot up, the rental rates for the lorries also go up. For example, sending a freight of goods from Salem to Chennai, the diesel cost was Rs. 7500. Now, with increased diesel prices, it costs an additional Rs. 1600.

With this, the lorry owners end up spending and losing from Rs. 30000 to Rs. 40000 per month. So, the booking agents are constrained to pay an increased rental rate to the lorry owners.