Costlier diesel set to fuel 10% increase in nat’l freight rates

Fearing Price Hike, Pranab Asks States To Slash Levies

New Delhi: Only hours after the government raised diesel prices by Rs 3 a litre, freight rates seemed headed for an 8-10% increase and some trucker associations warned of strikes, prompting finance minister Pranab Mukherjee to urge states to cut cess on fuel to cushion the impact. 

    Transport associations demanded an immediate rollback as did political parties and Opposition chief ministers. Congress allies the Trinamool Congress and the Nationalist Congress Party joined the protests, saying the decision was a blow to the aam admi. 
    As a sharp rise in freight rates seemed imminent, some experts said the actual weighted impact should not be more than 4% and that truckers were being opportunistic. 
    Already, reports said, freight rates have risen by Rs 2,000 per 10 tonne. For major metros like Delhi to Mumbai, Chennai and Kolkata and, prices moved up by Rs 2,000 to Rs 23,000 , Rs 51,000 and Rs 26,000, respectively. 
    According to reports, the Delhi transporters association on Saturday threatened to go on strike if the government did not reverse the hike. But this does not seem likely, with oil minister Jaipal Reddy insistent that the high cost of crude rules out soft options. The increase should not be more than 4%, whereas truck unions are gearing up for more than 10% hike, he said. 
INDIA SEES RED 
Price hike rollback chorus grows with opposition leaders & CMs of rival-ruled states lending voice to transport lobbies 
Congress asks states run by it to cut levies to ease the blow for aam admi; Maharashtra government mum, Mantralaya officials say no discussion yet on pruning taxes 
BJP describes the Congress as 'insensitive to the sufferings of the common man' as its activists protest across cities 
The CPM and other Left parties have asked workers to hold rallies to highlight 'another cruel blow' by the Manmohan Singh govt 
NCP TO JOIN PROTESTS 
    The Nationalist Congress Party (NCP), an alliance partner in the state and at Centre, will launch an agitation against the hike in the prices of diesel, kerosene and cooking gas. Maharashtra deputy chief minister Ajit Pawar on Saturday told party workers to protest the hike. "We are part of the government, but we are against this hike. I want NCP workers to react to the hike." P 2 Experts fear arbitrary rate hike 
New Delhi: A day after the government announced a hike in fuel prices, North India Motor Road Transport Association president Charan Singh Lohara said: "Freight rates will go up by 8-9% for all routes from Saturday because of the increase in diesel rates." The impact is sure to be felt on prices of perishables like vegetables as well as industrial items. But S P Singh of the Indian Foundation of Transport Research and Training warned that truckers and service providers such as couriers might be planning unjustified hikes. "Based on market feedback, we apprehend an arbitrary increase in truck rentals and retail parcel rates as in the past. The government should check this," he said. 
    Besides diesel, the Rs 50 rise per domestic LPG cylinder is sure to pinch household budgets, besides restaurants, and this decision might also be under pressure for review as it hits a very wide swathe of the population. The All India Motor Transport Congress demanded a rollback in diesel prices. "We request the PM and the finance minister for a I00% rollback of the diesel price hike," it said. 
    Mukherjee's move to ask states to reduce levies is aimed at transferring some of the onus of containing fuel price rise from the Centre to regional governments. 
    The Left and BJP hit the streets in protest and staged demonstrations in many parts of the country. 
    The Left parties asked all their units to immediately conduct hartals, demonstrations and other protest actions.BJP spokesman Shahnawaz Khan said, "It would not be an exaggeration if we say it is like imposing economic emergency on the nation." He further questioned "if it is Manmohan Singh's government or Manmohan Singh's company". 
Parties, unions want rollback of fuel hike 
New Delhi: A steep hike in fuel prices sparked protests across the country on Saturday with political parties and trade unions demanding a rollback and warning of agitations. The Centre on Friday increased diesel price by Rs 3 per litre, domestic LPG by Rs 50 per cylinder and kerosene by Rs 2 per litre. 
    Tamil Nadu CM J Jayalalithaa said: "The hike in diesel price would result in increased freight charges. This will lead to an increase in prices of all essential commodities, besides the price of vegetables." "Housewives, farmers and poorest of the poor will be badly affected," said leader of Opposition in Lok Sabha, Sushma Swaraj. TNN

A protest rally taken out by the BJP in Mumbai