"Around 450,000 lakh drivers in Gujarat will be hit by the decision. The hike will have a cascading effect on the overall industry," said Vasan Ahir, president, AGTTA.
There are 250,000 lakh trucks, 23,000 tankers, and 135,000 lakh other commercial vehicles in the state. Each vehicle travels around 350-400 kms per day.
Commercial transport in the state is likely to take a hit of Rs 75 crore per month, with the state's consumption of 250 million litres of diesel per month. Estimates suggest Gujarat also consumes around 80 million litres of petrol per month.
The association members are already facing a tough time amid rising oil and tyres prices. "The industry in Gujarat is going through a bad phase. Already, we are reeling under rising prices of oil and tyres. Now, with the fuel prices heading north, it is only adding to our woes," said Hiten Vasant, executive member, AGTTA. Incidentally, the price of diesel in Gujarat is the highest in the country compared with other states. The state levies an additional value added tax (VAT) of 24 per cent on diesel leading to a total rise in price by Rs 3.75 per litre.