Why India's trucking industry is staring at a crisis
What's the story
India's transport sector is facing a major operational crisis due to falling freight rates, rising diesel prices, and fuel supply disruptions. The situation is affecting truckers across the country. Industry bodies estimate that nearly 25-30% of the country's active trucking fleet is either off the roads or facing severe operational delays. The stress on this sector has only increased with the latest diesel price hike.
Price surge
Transporters warn of potential wipeout
The fourth diesel price hike in 10 days has pushed cumulative increases to almost ₹8 per liter since May 15. This comes as freight demand remains weak and fleet availability stays elevated, limiting transporters' ability to pass on higher operating costs. A transporter associated with the All India Motor Transport Congress (AIMTC) said that if this trend continues for another two to three months, over 30% of India's trucking community could be wiped out.
Cost burden
Small fleet operators hardest hit
The impact of rising diesel prices is being felt most among small fleet operators who own fewer than five trucks. Industry estimates suggest idling rates for these operators have jumped to nearly 30-35% as they prefer to ground vehicles temporarily rather than run trips at a loss. Bal Malkit Singh, advisor and former president of AIMTC, warned that if transport economics collapse, the wider economy will inevitably feel the pressure.
Trade impact
Crisis deepening in logistics and industrial corridors
The disruption caused by rising diesel prices and fuel shortages is now concentrated around industrial belts, logistics hubs, and export-import corridors. Transporters linked to the Kandla-Mundra container ecosystem have seen daily truck movement drop from nearly 5,000 vehicles a day to about 1,000. Fleet operators in Rajkot, Marathwada (Maharashtra), and other industrial areas of Gujarat and Maharashtra have also witnessed a sharp decline in coal, machinery, and engineering goods transport.
Supply chain
Fuel rationing reported at several pumps
The crisis is not just limited to rising diesel prices but also localized shortages and pump-level rationing. This has disrupted long-haul movement across parts of Maharashtra, Gujarat, Haryana, Uttarakhand, and some northeastern states. A Chandigarh-based transporter told BusinessLine that several pumps in Haryana and Uttarakhand have started restricting diesel sales to about 100-150-liter per truck.
Crisis deepens
Fuel now accounts for nearly 65% of truck operating costs
The current crisis is being driven less by absolute fuel scarcity and more by a widening pricing mismatch between bulk diesel purchases and the retail pump prices. After bulk diesel discounts were withdrawn, large fleet operators and industrial buyers increasingly turned to retail pumps, putting even more pressure on public fuel stations. This has made the situation especially difficult, as fuel alone now accounts for nearly 55-65% of truck operating costs.