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How Fuel (Petrol And Diesel) Price Hike Can Change Packers And Movers Industry!

Petrol pump fulling head

This year, the fuel prices (petrol and diesel) have hit an all-time high in the economic history of our country. Yes, the entire globe is slowly recovering from the onslaught of the deadly Covid-19 virus. But still things are yet to improve in many sectors. As a result, there has been a weak consumer demand for many products and services. The opposition parties & business experts urge the Government to reduce the price cost on fuel. The reason, it affects the common man. However, the Government is not to be blamed entirely for the hike in prices. The reason, the price change has been the same all over the globe. Also, the Government has had to deal with a fallen economy. So, the taxes as usual fall on milking sectors such as health, fuel and software. But the challenge is, that everyone is vouching for the common man problems. But they have turned a blind eye to the challenges faced in the Packers and Movers industry.

This blog focuses on how fuel (petrol and diesel) prices can change the packers and movers industry. It also throws light on the points that have rarely caught the ordinary citizen’s eyes.

The average household income of an Indian family declined after the Covid-19 epidemic. Also, the unprecedented rise in fuel such as petrol and diesel made many working professionals (who go to work in their own vehicles) opt for public transport or buy electric vehicles. The worst hit business sector is the packers and movers industry. The reason, diesel is used for commercial transportation.

As per relocation industry experts – “The industry is still to recover from the slowdown caused by the pandemic. There are many companies who have still opted to make their employees work from home. At this stage, it has become difficult for us to bear this hike. If the Government can suggest some alternative measures, then it will be helpful.”

The Indian Economy When it Comes to Fuel Prices (2011 to 2021):

Please take a look at the price changes between the years:

Petrol and Diesel Price Year Wise (Aprox)
Years Petrol price in Rs Diesel Price in Rs
2011  58.57 37.75 
2015  64.49 53.71 
2017  69.09 59.33
2020  79.76 79.78 
2021  99.86 89.36 

We have not included the recent petrol and diesel prices in 2022 as they are already known.  The packers and movers industry mainly thrive on fuel to deliver the goods. It has to be noted that the major transportation happen by roads and national highways. So, it is quite well-known that this industry gets affected by the hike in diesel prices.

There are other causes that lead to a hike in relocation service packages because of an increase in fuel consumption. They are as follows:

The delivery can happen at a location without proper roads and sometimes, the new location will be a hilly terrain. In this situation, the fuel consumption will be more, and the relocation company gets forced to hike a normal shifting service package.

Engine Idling – Have you noticed the waiting times for refuelling of trucks and other vehicles at toll booths, check-points? Engine Idling happens at this stage. This could lead to fuel wastage.

In case of unforeseen situations such as road damage due to weather conditions, traffic jams, the vehicle drivers may be forced to opt for another route. This may also lead to more fuel consumption.

How Fuel (Petrol And Diesel) Price Hike Can Change Packers And Movers Industry

Change in Prices and Customer Dissatisfaction

The average Indian is well-aware of the changes in the fuel prices. However, when it comes to paying for shifting services, they are surprised at the changes in transportation prices. On the other hand, the companies in the packers and movers industry are hard-pressed to increase the charges for their services for every sector service ranging from

  • Home shifting services
  • Office/corporate moving services
  • Commercial goods moving services
  • Vehicle transportation service (car moving services & bike shifting services)
  • Pet relocation services
  • Industrial component moving services
  • Warehousing services

Reputed companies such as Cloudpackers who have a team of their own, including own vehicles can survive the changes. Yes, they may face reduction in profits in adhering to the competition. However, small truck owners offering third party services to unnamed relocation companies, they face heavy losses. The reason, these truck owners are bound by contractors for six months or an annual basis.

As per a survey conducted by business experts in the packers and movers industry, nearly 10,000 to 15,000 small relocation companies may go out for business. This is because of the new increase in diesel prices. The reason, the demand for relocation vehicles (trucks and other modes of transport) are more and the industry is finding it difficult to fulfil them. So, to sustain in the industry, many packers and movers companies’ have decided to cut down the number of vehicles in their transportation fleet. Also, they have postponed the purchase of new vehicles thereby giving a slowdown to the automobile industry. This is an insight on how fuel (petrol and diesel) price hikes can change packers and movers industry.

What Is The Future Condition Of The Packers And Movers Industry?

The shifting companies accepted the changes in the fuel price until 2021, though the profits were low. However, in 2022, with diesel prices hitting the roof, they have started negotiating with the service packages and prices. Yes, they have been careful not to pass on the entire cost on the customers’ shoulders, but there has been a 10 to 20 percent hike in local shifting services, 30 to 40 percent hike in intercity, interstate shifting services (depending on distance). This is another point on how fuel (petrol and diesel) price hike can change packers and movers industry.

Example – If the fuel price has increased to ten percent, then the service charges will have to be increased by two percent. The distance also plays a major part in the transportation service charges. Post-pandemic time, the packers and movers industry finds it difficult to change the prices for every hike in fuel.

E-Commerce- When it comes to relocation industry, it has to be noted, that the E-Commerce sector also thrives on the packers and movers companies. Business giants such as Flipkart & Amazon may have their own vehicles. But there are thousands of small E-Commerce companies which rely on reliable relocation service companies such as Cloudpackers to transport their goods when it comes to interstate delivery.



Hope you have gained enough points on how fuel (petrol and diesel) price hike can change packers and movers Industry. It will be a welcome change if the customers can understand the challenges faced by the relocation companies and give full support to the price change. Then, the companies offering shifting services of various types will also gain profits and they will spare no effort in offering their best services to the customers.

Debasish Pramanik
Debasish Pramanikhttps://www.cloudpackers.com/
Dev is a Digital Marketer, a Blogger and a Public speaker and currently Living a Digital Nomad Lifestyle. He owned a series of businesses and founder of MaxTexh Solutions. He is currently helping 100+ businesses to grow their business in the digital era.


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