Low demand has pushed the charge of truck rentals on key routes downward by 5-8 per cent in May, even as fuel prices are on the rise.

Oil marketing companies have hiked the cost of diesel and petrol by about Rs 4.7 and Rs 4.1 per liter, respectively, since the beginning of May, following a 65-day freeze on price revisions when a number of states went to polls.

It said that a 10-15 per cent growth in arrival of fruits and vegetables into mandis in May helped prevent an even larger fall in truck rentals as demand crashed due to the impact of the pandemic and multiple cyclones.

A report by the Indian Foundation of Transport Research and Training (IFTRT) noted that the cost of truck rentals had fallen 5-8 per cent across key routes despite rising fuel prices as demand fell to 40-50 per cent of normal levels.

It said that a 10-15 per cent growth in arrival of fruits and vegetables into mandis in May helped prevent an even larger fall in truck rentals as demand crashed due to the impact of the pandemic and multiple cyclones.