AIMTC Demands Fuel Price Cuts Following Nayara Energy Petrol and Diesel Rate Reductions

On Wednesday, the All India Motor Transport Congress (AIMTC) urged the Central Government of India and public sector oil marketing companies to lower domestic fuel prices. The demand followed a decision by Nayara Energy to reduce its petrol prices by ₹5 per litre and diesel by ₹3 per litre.

Bal Malkit Singh, the advisor and former president of the AIMTC, welcomed Nayara Energy's price cuts. He called on the government, public sector oil marketing companies, and other private fuel retailers to pass the benefits of lower global crude oil prices on to transporters and consumers.

Singh pointed out that international crude oil prices have fallen below US$70 per barrel, nearing pre-war levels. He stated that Nayara Energy demonstrated that benefits can be passed to consumers when international prices decline, and urged other companies to follow suit without delay.

The road transport sector has experienced significant financial pressure over recent months due to repeated fuel price increases. Diesel accounts for 55% to 60% of the operating costs of commercial vehicles, meaning every price hike pushes up overall logistics costs.

According to Singh, transport operators are also dealing with rising expenses for tyres, spare parts, lubricants, AdBlue, insurance premiums, toll charges, permits, chassis prices, driver wages, daily allowances, finance costs, loan repayments, and regulatory compliance. Meanwhile, stiff competition has kept freight rates under pressure, with small operators being the worst hit.

Singh recently presented the industry's demands to Union Petroleum and Natural Gas Minister Hardeep Singh Puri. These demands include an immediate reduction in diesel prices, restoring domestic fuel prices closer to pre-war levels, bringing diesel under the GST regime, and implementing a "One Nation, One Tax, One Uniform Diesel Price" system.