Union Minister of Ports, Shipping and Waterways (MoPSW) Sarbananda Sonowal said, “the rising Fuel cost at international level is now making our local Ro-Pax and Passenger Ferry operations unviable so this exemption of vessel and port related charges by MoPSW will provide the necessary breather to this sector for the next 6 months”.
He said “we have also requested MoPNG to consider reduction in Fuel prices and Ministry of Finance to lower the associated taxes on it so as to provide the necessary support to this sector in present circumstances.”
The cost of Marine fuel ‘Low Sulphur High Flash High Speed Diesel’ (LSHFHSD) has increased from Rs.76,000/KL to Rs.1,21,000/KL. Similarly, the cost of ‘Very Low Sulphur Fuel Oil’(VLSFO) has increased from Rs.40608/KL to Rs.80917/KL.
In order to provide some quick respite to this sector from the impact of Global Increase in Price of Fuel, MoPSW has directed all Major Ports to exempt all berth hiring and vessel related charges being currently levied to the Ro-Pax/Passenger Ferries for the next six months with immediate effect.
It is to be noted here that in the beginning of FY 2021-22 the cost of marine fuel-LSHFHSD used to be 10-15% less than retail diesel-HSD. Hence, effectively the rise is more than 40%.
The Ro-Pax services implemented by Deendayal Port Authority between Ghogha and Hazira under Sagarmala Programme have reduced travel time from 12 hrs. to 4 hrs.
This Ro-Pax ferry service have carried over 78,000 vehicles and more than 2.6 lakh passengers since inception.
Similarly, Maharashtra Maritime Board initiated Ro-Pax ferry service on Mumbai – Mandwa route.
Project resulted in saving of around 3 hours of road travel against 45 minutes by sea route.
More than 5.5 Lakh passengers have availed this Ro-Pax service and more than 1 lakh vehicles have been transported.
In order to promote the surface water transportation and to encourage the newly emerging inland passenger and vehicle movement eco system of the country, the various issues of rising Global Marine Fuel prices and their bunker pricing, ineffective GST input credit for Ferry Operators, Growing difference between the cost of Marine Fuel and Retail Fuel should be looked into and necessary consideration should be given to promote this sector, the official note of Ministry of Ports, Shipping and Waterways said on Sunday.
It is noteworthy that, marine fuel prices inclusive of taxes have cascading effect on the full value chain of Mass Surface Water transport system and ecosystem, the burden of which the ferry operators cannot pass on to the common public who has the option of using other Government subsidized public transport system of rail or road. These operational hurdles will ultimately act as stumbling block in establishing this budding ecosystem of surface water transportation in the country.
