Diesel crunch idles 20% of India's truck fleet, freight rates jump 10-15% on key corridors

Four fuel hikes in 11 days (Rs 7.5-8/litre) and diesel shortages have parked 1.9M of India's 9.5M trucks. With diesel at 40-45% of operating costs, West-North freight rates are up 10-15%, threatening retail margins and food inflation as the disruption hits supply chains immediately.

— Filed Tue, 26 May, 2026, 05:43 IST · Source ET Small Business · Updated

Diesel shortages and four fuel price hikes in 11 days have idled 20% of India's 9.5M truck fleet, pushing freight rates up 10-15% on key corridors and threatening inflationary pressure on retail goods, food prices and supply chains.

Why this matters

Follows PSU retailers' Rs 7.5/litre hike over 11 days as crude surged 50%+, with IOC flagging localised shortages as private pump demand spilled to PSU outlets, now cascading into freight.

Retail-company signals steady at 1,135 over 90 days, with fuel-cost shocks dominating recent flow.