In its analysis of truck rentals and diesel prices in the country between September to November period, IFTRT said, the government's decision to reduce diesel price by Rs 2 per litre last year has not benefited the common man as freight rates have been maintained at high levels.
"The reduction of diesel prices did not get reflected in any reduction in truck rentals and therefore, the loss of PSU oil companies and that of the State Exchequer did not result in any benefit to the common man," IFTRT said.
It said truck freights have spiralled by 72 to 84 per cent between April 2002 and March 2007, whereas diesel prices have increased to Rs 30.45 per litre from Rs 16.5 per litre in April 2002,
giving the industry enough cushion to absorb increase in fuel prices.
"Over-priced truck rentals and firm general cargo and retail freight rates in the last 4-5 years in relation to lesser increase in various input costs such as auto finance rates,... or toll taxes leaves enough strength in the industry to absorb any diesel price hike," IFTRT said.
Crude oil prices in the international markets have gone up to $95.5 per barrel compared to 22 dollar per barrel
in April 2002, IFTRT said.
The research agency said truck freights have shown constant increase over the last five years and went up to 2,735.84 million tonne in the last fiscal against 1,675.7 million tonne in 2002-03.
"It would be appropriate to revise petro product prices, particularly diesel and petrol, in order to bring some parity with zooming crude oil price in the international markets," it said.
