A worsening diesel supply crunch across parts of India has disrupted freight movement, pushed up transportation costs and intensified pressure on the country’s logistics sector, with industry executives warning of broader inflationary spillovers. Transport associations and logistics firms estimate that nearly one in five commercial trucks is currently off the road as operators struggle with fuel shortages and sharply rising diesel prices. The disruption has tightened vehicle availability across major freight corridors, leading to higher trucking rates and delays in cargo movement.  The crisis has hit smaller fleet owners particularly hard. These operators, who form the backbone of India’s fragmented trucking industry, are facing mounting operating expenses at a time when profit margins were already under strain from rising maintenance, toll and labour costs. Diesel prices have increased multiple times over the past two weeks following volatility in global crude markets linked to geopolitical tensions in West Asia. Industry bodies said fuel now accounts for nearly half of a truck operator’s total running cost, making it difficult for transporters to absorb additional price increases without passing them on to customers.  Freight rates on several high-traffic routes connecting western and northern India have reportedly risen by 10–15%, while local haulage services in some regions have seen even steeper increases. Operators involved in automobile logistics and industrial cargo movement said working capital pressures have also intensified after several fuel stations curtailed credit sales and shifted to advance payment requirements.  Large fleet operators acknowledged delays at fuel stations but said operations remain functional for now. Logistics companies have increasingly relied on route optimisation, predictive planning and fuel stock management to limit disruption. Mid-sized operators, however, have already scaled back trips in response to uncertain fuel availability and higher procurement costs.  The fuel shortage has been most visible along key transport corridors, where long queues of trucks have formed outside retail fuel stations. Industry executives attributed part of the problem to bulk diesel buyers shifting purchases to retail outlets after institutional fuel prices rose significantly above pump prices, creating supply pressure at public stations.  Analysts warned that if elevated diesel prices persist, the impact could extend beyond logistics into consumer markets. Higher freight charges are expected to raise transportation costs for food products, agricultural produce, manufactured goods and other essentials, adding to inflationary pressures already affecting households and businesses. Follow CARGOCONNECT for more such updates.