Freight Costs Across India Set to Rise Up to 3 Percent Following Diesel Price Hike, Transporters Warn

Ashok Goyal, National President of AITWA, said the road transport sector, which serves as the backbone of India’s supply chain and economic movement, is heavily dependent on diesel and other oil-derived products for its operations. He stated that transporters, facing sustained pressure from rising operational expenses, will have no option but to partially pass on the increased burden to customers. According to him, freight rates across sectors are expected to rise by approximately 2.5 to 3 percent immediately.

AITWA noted that the government’s decision to delay fuel price increases for several weeks had provided significant cushioning support to businesses, consumers, and the wider economy. However, the association emphasized that the transport industry has already been under severe cost pressure over recent weeks due to multiple input cost escalations.

The association highlighted that prices of diesel exhaust fluid and urea used in BS-VI compliant vehicles have increased by more than 50 percent. In addition, costs of tyres, lubricants, toll charges, and other operational inputs have also risen significantly, further straining logistics operations across the country.

AITWA also stated that it is actively encouraging and working toward the transition to electric mobility and other alternative fuel technologies as part of its long-term sustainability efforts.

Goyal further stressed that uninterrupted fuel availability remains essential for maintaining smooth logistics operations nationwide. He said the association is working closely with government authorities to ensure continuous fuel supply and prevent disruptions, warning that uncertainty and supply shortages are already increasing costs and reducing operational efficiency across the logistics ecosystem.

The developments underscore mounting pressure on India’s logistics sector, with rising fuel-linked costs and input price inflation expected to directly impact freight movement and supply chain stability across industries.