Moneycontrol PRO
HomeNewsBusinessAIMTC says 65% trucks sitting idle due to spiralling fuel prices, corruption

AIMTC says 65% trucks sitting idle due to spiralling fuel prices, corruption

Unbridled hike in fuel prices and rampant extortion at border check-posts in states have hit truckers hard, and if the government fails to intervene, disruption of transport services cannot be ruled out, AIMTC said.

June 21, 2020 / 19:54 IST
Representative image

Representative image

Truck operators' body AIMTC on Sunday said 65 per cent of the total trucks in the country are sitting idle due to spiralling fuel prices, corruption and no tangible relief to transporters, hit hard by COVID-19.

All India Motor Transport Congress (AIMTC) is the apex body of transporters, representing about 95 lakh truckers and other entities.

Unbridled hike in fuel prices and rampant extortion at border check-posts in states have hit truckers hard, and if the government fails to intervene, disruption of transport services cannot be ruled out, AIMTC said.

Diesel price on Sunday hit a fresh record high after rates were hiked by 60 paise per litre, while petrol price was up 35 paise, taking the cumulative increase in rates in 15 days to Rs 8.88 a litre and Rs 7.97, respectively.

"The operations are increasingly becoming unviable as about 60 per cent of the transport operating cost is of diesel and about 20 per cent constitute Toll. Already, the demand is low and the idling of the vehicles is at about 65 per cent. More and more small operators are going bust and vehicles are coming to a halt," AIMTC President Kultaran Singh Atwal told PTI.

The government failed to provide any tangible relief to the road transport sector or provide any facilitating environment to the segment for a come-back, he said, adding extortion of truckers was also rampant in different states.

"Inspite of writing to the Hon'ble Prime Minister, the situation on the ground has not changed. The corruption in various states like in Madhya Pradesh, Bihar, West Bengal, Maharashtra, Haryana, Rajasthan, Delhi etc at the hands of RTOs and police is getting unbearable," AIMTC alleged.

AIMTC has been issuing similar statements and threats of disruption in services regularly for past few months.

"The small operators are unable to pay EMIs and interest. There are reports of harassment by bank officials threatening the vehicle owners for seizing of the vehicles. Under the circumstances, plying of vehicles are being tough increasingly," AIMTC Secretary General Naveen Gupta said.

Earlier, the organisation had sought a minimum rescue package from the government saying that the truckers have been hit hard due to COVID-19 pandemic and resultant lockdown.

first published: Jun 21, 2020 07:40 pm

Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347