Freight rates to cool down after cut in diesel prices

The cut in diesel and petrol prices will lead to lower road freight rates in the coming days, according to the Indian Foundation of Transport Research and Training (IFTRT), reported Business Standard. The reduced cost of road freight will be passed on to consumers in the form of reduced prices of consumer goods, and food items.

“Freight rates are expected to come down 10-12 per cent in the next few days,” S.P. Singh, a senior fellow at the IFTRT, told Business Standard.

The cut in fuel prices came as state governments announced cuts in VAT and the Centre lowered excise on fuel. In Delhi, diesel prices are already down by Rs 12. In response, truck rentals for key road freight routes are expected to fall over the next five months. Truck rentals had been steadily climbing since June after being cut by nearly 25 percent in April-May due to the second wave of the pandemic.