The reduction of Rs. 9.19 in the diesel price, from Rs. 64.07 in October to Rs. 54.88 as on December 16, is yet to get reflected in the day-to-day life of the common man in the form of reduction in the prices of essential commodities.
This is primarily due to fleet operators not passing on the benefit by reducing the freight charges.
Except for sugar transporters who have reduced charges by about 20 paisa per kg, others are yet to respond, said Ramesh Chandra Lahoti, president of Bengaluru Wholesale Food Grains and Pulses Merchants Association.
Mr. Lahoti told The Hindu that the impact of diesel price reduction is yet to be felt in the retail market.
At the same time, prices of certain commodities, including toor dal, are high due to drought and reduced production, he said.
S. Sampathraman, president of Federation of Karnataka Chambers of Commerce and Industry, told The Hindu the Prime Minister had not been liberal for all the rhetoric he made.
The government had not fully passed on the benefits of the reduction in crude oil prices and is netting more money by levying additional duties.
He said freight operators should voluntarily have reduced the rates and even road transport corporations and the Railways have not responded to the diesel price reduction, Mr. Sampathraman said. G.M. Venkatesh, a senior procurement executive with a multi-chain retailer in Bengaluru, said the prices of vegetables have reduced due to the prevailing Dhanur Masa and not because of any reduction in freight charges.
B. Channa Reddy, president of Federation of Karnataka State Lorry Owners Association, said it is but natural that operators reduce freight rates given the stiff competition in the field. However, he was not aware of the quantum of reduction.
PEOPLE SPEAK
S. Sampathraman, President, FKCCI: But vendors and transporters having diesel as a significant cost component are not responding and reciprocating with full matching reductions. Even Railways has not reduced fares. GOI has not actually passed on full benefits.
Ramesh Chandra Lahoti, President, Bengaluru Wholesale Food Grains and Pulses Merchants’ Association: Diesel price reduction is not reflected on prices of commodities in the retail market.
B. Channa Reddy, President, Federation of Karnataka State Lorry Owners Association: Operators are already reducing freight rates, which is more visible on routes with less loads.
