Abstract:

This article discuss about the possible impact of a rise in fuel costs, especially diesel and some of the sustainable solutions for the short term and medium-to-long term horizons and also which mode of transportation would suffer most from higher fuel prices in India. The rise in fuel price would definitely impact the ownership and running cost of vehicles. Some of the impacts are immediate and heavy on businesses that rely on transportation, while some are medium-to-long term impacts. In the bus segment the impact of diesel price hike is huge and for railways, it could, however, lead to increased freight tariff as part of the cross-subsidisation approach of Indian Railways. The rise in fuel prices and merging of diesel and petrol prices will lead to perceptible changes in how people and goods move in the country.