The Impacts of India’s Diesel Price Reforms on the Trucking Industry

A report released this week evaluates the impact of higher diesel prices on India’s road freight transport sector.

Published by the International Institute for Sustainable Development (IISD) and Integrated Research and Action for Development (IRADe), the report finds that the trucking industry is vulnerable to higher fuel costs, and supports the earlier evidence that the fuel costs account for around 55 per cent of their total operating costs.

However, the main finding of the study is that the industry’s weakness is primarily grounded in structural constraints that have squeezed profit margins, while providing truckers with little leverage to pass on higher costs to clients. The study suggests that addressing these constraints—more so than subsidizing the cost of fuel—is the solution to the long-term profitability of the industry.

The Impacts of India’s Diesel Price Reforms on the Trucking Industry is available at http://www.iisd.org/gsi/sites/default/files/ffs_india_irade_trucking.pdf

 

Advertisements

About iradeblog

Integrated Research and Action for Development (IRADe) is set up as a fully autonomous, non-profit advanced research institute, which aims to do research and policy analysis, train people and be a hub of a network among various stakeholders. IRADe is an institute that focuses on research and effective action through: -Multi-disciplinary and multi-stakeholder research for implementable solutions for sustainable development. -Policy and action research that accounts for the effective governance of techno-economic and socio-cultural issues. It is a 'think tank' that works with 'action tanks'.
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s