Wheels of trade could slow down due to fuel price increases, say voices from goods & services industry

Bella Jaisinghani

Mumbai: Members of the goods and services industry that consumes vast amounts of fuel said on Monday that fuel price hikes in quick succession will slow down the wheels of their trade. The latest hike on Monday has brought fresh anxiety to fishermen whose boats ply on diesel, to courier firms, logistics companies, packers and movers as well as vegetable and fruit traders.

Saki Naka, Andheri, is the hub of transport, logistics and courier firms. One service provider said, “The courier, logistics, packing and moving industry is in distress. Electric vehicles cannot take huge loads or ply thousands of kms cross-country, so they are not an alternative for petrol-diesel vehicles.”



Delivery boys who earn monthly wages or are paid per consignment are also worried. Datta Sable from Amboli said, “I work for a grocery store which pays me a fixed sum per delivery within a 3 km radius. I use my own vehicle and am anxious about subtracting fuel expenses from my daily take-home earning. My co-riders say prices will rise further. How will I manage household expenses and travel?”

The fisheries industry is classified as a ‘bulk consumer’ of diesel and consequently pays a higher rate of Rs 155 per litre, said Devendra Tandel of Akhil Maharashtra Machhimar Kruti Samiti. He said, “Burdened by industrial bulk pricing, fisheries has been reeling under a Rs 75 per litre increase since March. If these prices persist after the monsoon ban, in July, 95% of our fishing vessels will be forced to dock permanently.”

Seafood exporter Irfan Khan of Harbour Exports said, “We were already struggling with [US-imposed] tariffs. Catch is less due to climatic conditions. Lots of orders have been cancelled due to the West Asia war, and now the diesel hike means we won’t be able to sustain.”

Traders in APMC are also worried. Nileshh Veera, director, APMC, said, “Increase in transportation rates is already showing a ripple effect on wages and prices of essential items. It will percolate downward in the next one month. Consumers will have to bear the brunt.”