What is the Impact of the Fuel Up-surge on Packers and Movers?

Fuel price is record high now and due to that, a number of small to medium economies are trembling. The world was recovering from the pandemic slowly but the price hike of the fuel, costs a lot to the people and it directly impacts the logistic industry.

The packers and movers industry mainly runs on fuel to deliver the goods. It has to be noted that the major transportation happens by roads and national highways. So, it is quite well-known that this industry gets affected by the hike in diesel prices.

Other causes lead to a hike in relocation service packages because of an increase in fuel consumption. Some of them are mentioned below.

Delivering goods on rough terrain becomes more costly

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.

Fuel wastage for engine idling

You may have noticed the waiting times for the refueling of trucks and other vehicles at toll booths. Engine Idling happens at this stage and most of the time this could lead to fuel wastage. It is quite clear that a high price increases the cost of overall packing and moving tasks and fuel wastage is an add-on factor that shoots the overall price of a relocation package.

Poor infrastructure multiplies the cost of the relocation

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

Impact of price hike on customer satisfaction

One thing is for sure, 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, packers and movers in India are hard-pressed to increase the charges for their services for every sector service ranging from home relocation, corporate shifting, car and bike transportation, commercial shifting, and international shifting. Since customers have to pay more, it can reduce their satisfaction and they probably hesitate to avail the service. Therefore, packers and movers in India deal very cautiously.

Loss of revenue

Each of the packer and mover companies was steadfast to achieve the business goal that was fixed at the start of the financial year. The fuel price hike was unexpected and it has forced the companies to lose revenue to some extent. One thing is to keep in mind that, when it comes to customer satisfaction, reputed service providers sacrifice the profit at the cost of customer satisfaction. When the profit goes down, the loss of revenue happens and it pulls down the growth trajectory of this sector.

Lowers the growth trajectory

Packers and movers are one of few sectors that highly depend on the fuel and a single change of price impacts heavily on this field. Once the fuel price is hiked, movers will be forced to increase their overall relocation cost and few people will opt for the DIY mode to save a few bucks. They don’t want to spend a hefty amount of money to shift to a new location. Various business houses, that opted for a professional packer and mover services to fulfill their moving task, will prefer to invest in their logistic section for cost savings. These are a few things that hamper the logistic sector and due to that, it will witness a lower growth.


The fuel price hike has a firm and long-term impact on the packers and movers industry. Moving companies have to follow various innovative tricks to intact the growth rate in this highly competitive era.

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