1. Truck rentals plunge 6% on weak demand

Truck rentals plunge 6% on weak demand

A price cut of Rs 1.91 a litre on diesel between January 1 and 16, a 30% drop in round trips on trunk routes in last fortnight due to timid factory...

By: | Chennai | Published: January 19, 2016 12:09 AM

A price cut of Rs 1.91 a litre on diesel between January 1 and 16, a 30% drop in round trips on trunk routes in last fortnight due to timid factory output coupled with nil impact of anti-overloading order on national highways and a drop in consumer spending post festival season have all led to a 6% fall in truck rentals, said an Indian Foundation of Transport Research and Training (IFTRT) report on Monday.

With the Union finance ministry busy on mopping up the benefit of steep drop in international crude price by jacking up excise duty by Rs 2 a litre, oil marketing companies (OMCs) had cut the diesel price by Rs 1.91 a litre in two tranches on January 1 and January 15. This got reflected in sharp drop in truck rentals during last fortnight by 6% on trunk routes, the report said.

The steady and healthy flow of winter fruit and vegetable crops in most parts of the country has not been able to hold truck rentals at the last month level which witnessed 2.5% increase during December 2015 because the cargo offerings from factory gates were significantly less and the same adversely impacted the round trips by 30% in new year as consumer spending too has dropped.

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