Truck rentals climbed by 2.5% last month due to 25-30% rise in the arrival of fruits and vegetables, according to a report by the Indian Foundation of Transport Research & Training.
At the end of December, state-run oil marketing companies (OMC) reduced the diesel price by Rs. 1.06/litre, which was far short of expected cut by Rs. 3.5 to Rs. 4/litre, according to the report.
In addition, the Central Government on 2nd January announced an increase of INR 2/litre in the excise duty.
According to the report, such behaviour of OMCs in tandem with increase in excise duty by the finance ministry prevents alignment of the truck rentals with the market rates.
However, tyre prices for various categories (particularly that of truck & bus) have dropped by around 10% in the last 3 to 4 months.
Diesel and tyre costs constitute 90% of the variable operating cost for truck fleet operators.