Title - Blow to rlys, but freight rate hike unlikely

New Delhi: The diesel price hike has come as a shocker for the railways, which is reeling from a financial crunch, but there is no immediate plan to increase freight tariffs. The Rs 5 diesel price hike is expected to put an additional burden of around Rs 1,200 crore every year on the cash-strapped transporter, headed by Trinamool Congress’ Mukul Roy.
    “There is no move as yet to increase freight charges, though the increase in diesel price will hit us badly. As of now, we have no plan to shift the burden on freight operators,” a senior railway official said. The railways had effected a 20-25% hike in freight rates before the rail budget this year. The transporter consumes about 280 crore litres of diesel every year to run its fleet of around 4,500 diesel locomotives, hauling freight and passenger trains.
    The railways paid about Rs 13,209 crore in the current fiscal and Rs 11,741 crore during the last fiscal towards its fuel bill. The increase in fuel consumption every year is due to the addition of new services and more freight haulage.
    “Since nearly six months have already passed in 2012-13, the addition to the fuel bill will be around Rs 100 crore per month this fiscal,” a senior railway official said.
    The three oil PSUs — Indian Oil, HPCL and BPCL — supply fuel providing a subsidy of 30 paise per litre as the railways is a bulk consumer.


Agra residents stop a train to protest the diesel price hike