As fuel prices are falling here in the US, the Indian government has announced an increase in the price of diesel. For the majority of Indian logistics companies diesel fuel accounts for up to sixty percent of the total logistics cost, so any increase in fuel prices will force freight rates up which ultimately will be passed on to the Indian consumer. The Indian Foundation of Transport Research & Training (IFTRT) expects the new increase in diesel prices to increase freight rates by at least four percent. The price of diesel in India has already increased over 25 percent between 2005 and 2010. Calls for the government to rollback the diesel price increase has been made on behalf of the freight industry by the All India Motor Transport Congress (AIMTC). The AIMTC has written to the prime minister and finance minister for 100% rollback. If the diesel prices are not reduced by July 2nd, the AIMTC have threatened to launch an indefinite strike by freight operators.
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