'Rising fuel prices and shortages threaten India’s transport and logistics sector'

Fuel shortages in parts of the country are posing a serious threat to India’s transport and logistics sector. Representational pic

Rising petrol and diesel prices and reports of fuel shortages in several parts of the country are posing a serious threat to India's transport and logistics sector, raising fears of major disruptions to national supply chains, industry experts warned.

The fuel crisis across the country has triggered concern within the transport industry, with reports suggesting that a significant number of trucks are being forced off the roads due to fuel availability issues.

Industry leaders said that the situation could gradually cripple transport operations across multiple regions if urgent corrective measures are not taken.

Cascading effect on economy

Expressing alarm over the growing crisis, Bal Malkit Singh, advisor and former president of All India Motor Transport Congress, said the sector is already under severe financial pressure due to rising operational costs and stagnant freight rates.

"The transport sector across the country is already under severe financial stress. The present fuel shortages and restrictions on diesel supply to commercial vehicles may create a cascading effect on the entire economy," Singh said.

He also warned that any interruption in diesel supply to commercial vehicles would directly affect the movement of essential goods and industrial supply chains, impacting manufacturing activities, imports, exports and broader economic operations.

Highlighting the concerns about the disruptions, Singh further said, "Commercial vehicles must receive an uninterrupted and adequate fuel supply without restrictions or stoppages. Any disruption in truck movement directly impacts supply chains, essential commodities, manufacturing activities, imports, exports and overall economic movement."

Rising fuel prices likely to cause severe impact on transport sector

The transport body cautioned that failure to resolve the issue immediately could result in severe transportation bottlenecks and even partial standstill of logistics operations across critical sectors.

Singh also appealed to both the Central and the state governments, along with oil marketing companies and other authorities concerned, to intervene urgently and ensure smooth fuel availability for commercial transport vehicles.

"We urge the government and oil marketing companies to take proactive measures to stabilise the situation before it is too late," he said.

Industry stakeholders stressed that uninterrupted truck movement remains vital for sustaining India's supply chain network, industrial production, and timely distribution of essential commodities, warning that prolonged disruption could have widespread economic consequences.