The All India Motor Transport Congress has demanded that the government should reduce the excise, custom duty and VAT on diesel as Central and state taxes make up nearly half of the diesel price.

"Diesel is a major factor which increases our transportation costs. The burden is usually passed on to the common man, who has to pay more for vegetables, fruits and other essential commodities,'' said Bal Malkit Singh of AIMTC.

At the recent meeting with the Prime Minister-appointed Central committee on transport development in Mumbai, Singh pointed out that unless the taxes on diesel were rolled back, the common man would continue to suffer. "The government needs to take a sympathetic view on the issue. Increasing diesel costs every month will only add to the burden of the consumer."

He stated the rising diesel prices would also increase the freight charges of goods. In the past few weeks, the freight charges went up by around 2% and is likely to go up further.

"Diesel price hike is a very sensitive issue to the road transport industry. We have asked the Central panel to consider our demands and give us waivers in VAT/duty on diesel,'' he stated.
"Transporters are the worst affected by the differential pricing in different states as the vehicles travel throughout the country. We, therefore, suggest uniform rate of diesel across the country,'' he added.