Petrol and diesel prices are already skyrocketing, and now its direct impact is visible on the goods reaching your doorstep. AITWA – the All India Transporters Welfare Association, a national body of transporters – has announced an increase in freight rates. With truck freight rates rising, every commodity transported by road – including vegetables, grains and medicines – is going to get costlier. The increase in diesel prices has created a ‘domino effect’, the victim of which will be the common man, who is already struggling with rising inflation.
When we took stock of the situation at the ground level, the truth turned out to be even more worrying. The association has decided to implement ‘Fuel Adjustment Factor’ (FAF), which becomes effective from May 20, 2026. The formula is simple: freight rates will automatically increase by 0.65 per cent for every subsequent increase of Re 1 per liter in diesel price, taking diesel prices as of May 15, 2026, as the base. AITWA says transportation costs have increased over the past few weeks. Global tensions over the Strait of Hormuz have disrupted crude oil supplies, while pressure on the Indian rupee has made imports more expensive.
Five percent increase in tire prices
AW (also known as DEF) prices have almost doubled in the last two months. Tire prices have increased by five per cent, and toll charges have also been increased across the country from April 1, 2026. According to the association, diesel accounts for about 65 percent of total transportation costs; As a result, he was forced to take this step.
Diesel shortage begins
Additionally, drivers have reported that there is a shortage of diesel at fuel pumps. Drivers said that at many places, pumps are refusing to dispense more than 100 liters of diesel at a time, adding to the problems of trucks plying on long distance routes. This simply means that truck deliveries will be delayed, costs will increase and the economic burden will ultimately fall on the common consumer. And the matter does not end here. Transporters have also said that orders for goods have already declined. Demand has fallen while costs have risen—this double whammy is hollowing out the industry from within. Road transport is the backbone of India’s supply chain, and now it too is going through tough times.
