Rs25 diesel price hike shocks bizmen

Tribune News Service

Ludhiana, March 21

The government’s decision to hike the price of diesel has come as a jolt for bulk users. They have never witnessed such a huge jump in diesel price before and that too just for the industry, which uses thousands of litres of fuel on daily basis.

The fuel price hike announcement for bulk users has come as a shock. We are using on an average 1,000 litres of diesel every day to run units. This means that our daily expenses have gone up by Rs25,000 all of a sudden. — KK Seth, Neelam Cycles

We run factories on diesel only. Sudden fuel price hike has shocked us. The government should have increased diesel price in retail market too. The hike could have been Rs10 for bulk users and Rs5 in retail per litre for ordinary user. — Industrialist, Ludhiana

Most bulk users of diesel in the city are large scale factories like Hero Cycles, Avon Cycles, Neelam Cycles and few textile industries. Industrialists believe that hike of Rs2 to Rs3 per litre was justified and they always supported the government move, but Rs25 per litre increase was simply not acceptable.

KK Seth from Neelam Cycles said this announcement had come as a shock. “We are using on an average 1,000 litres of diesel every day to run units. This means that our daily expenses have gone up by Rs25,000 all of a sudden.”

“Do you think we are getting the returns or margins like the way they have increased fuel price? Since morning, I am not able to concentrate on my work. They should have increased diesel price by a few rupees, but Rs25 per litre hike is exorbitant. Never in my working career of 50 years I have seen such a jump in fuel price,” rued Seth.

Another industrialist, wishing not to be quoted, said there were many industries in Ludhiana, which used diesel in bulk. “Tankers come on daily basis or thrice a week for filling underground diesel tanks in factories,” he added.

“We run factories on diesel only, but this sudden price hike has shocked us. The government should have increased the diesel price in retail market and for bulk users too. The price could have been increased upto Rs10 for bulk users while in retail, it could have gone up by Rs5 per litre. Only we will bear the brunt of the government’s decision, which is not justified,” said another industrialist.

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