Diesel rate hiked to help private oil firms

CHENNAI: The Centre’s move to hike the price of diesel by three rupees was effected to cover up the losses of private oil companies that run 30 per cent of the retail fuel business in India, charged Tamil Nadu Confederation of Surface Transport president R Sugumar.Speaking to Express here on Friday, he said that since January, the private oil companies have not been selling diesel owing to heavy losses. “Hence, the Government has taken a decision that would squarely benefit the private players in the field,” he said.When it was pointed out that the public sector oil companies would also make substantial profits as a result of the move, he replied: “With an increase in fuel rates, the private companies would resume their diesel sale in the coming days.”Pointing out that the move would adversely affect the transport sector, he said the industry was already reeling under severe crisis. “Over the past two months, the insurance premium and highway toll charges have increased by 63 per cent and the prices of tyres by Rs 3,000. In such a scenario, the diesel rate hike has come like a bolt from the blue, which is likely to hit our business hard.”Sugumar felt that the rate revision would also affect vegetable prices and sought its immediate rollback.“Transporters from across the country are meeting at New Delhi on Monday under the banner of the All India Motor Transport Congress (AIMTC) for discussing the future course of action against the price hike,” he informed.The AIMTC had threatened to go on a nation-wide truckers’ strike if the government went ahead with the revision of diesel prices.