Diesel sales tax hike sparks indefinite truckers strike

Key Takeaways

  • Truck owners in Karnataka have commenced an indefinite strike to protest the state government’s decision to hike sales tax on diesel.
  • The strike is expected to affect supplies of essential and industrial goods if the stalemate continues.
  • Transport Minister Ramalinga Reddy has appealed to the truckers to reconsider their decision and call off the strike.

Bengaluru: Truck owners across Karnataka commenced an indefinite strike from Tuesday, protesting the state government’s decision to hike sales tax on diesel, which has resulted in higher retail fuel prices. The strike, led by the Federation of Karnataka State Lorry Owners and Agents Association, has raised concerns about toll collection on state highways. Over 1,000 trucks are expected to be off the roads during the strike.

Announcing the strike, Association President GP Shanmugappa said thousands of trucks, including those coming from neighbouring states, would remain off the roads. However, trucks ferrying milk and perishable goods have been exempted from the protest.

The strike call was issued on April 4, demanding a rollback of the increased diesel price and resolution of other pressing issues affecting the trucking industry. Despite appeals by Transport Minister Ramalinga Reddy to reconsider, the association proceeded with its decision.

Reddy, addressing media persons, criticised the strike, pointing out that truckers did not protest during significant hikes in central fuel taxes over the past decade. “In 2015, diesel was ₹49.54 per litre. Today, it stands at ₹91.05. When global crude oil fell from $140 to $60 per barrel, retail prices still rose under the Modi government. Why strike now, over a ₹2 hike by the state?” he questioned.

He added that Karnataka offers the second-lowest diesel prices in southern India after Puducherry. “In public interest, the strike should be called off,” he urged.

Meanwhile, a parallel body, Federation of Karnataka Lorry Owners Association, distanced itself from the protest, with its honorary president Channa Reddy stating that the decision was taken unilaterally and without proper consultation.

The impact of the strike is expected to be felt across the logistics sector, potentially affecting supplies of essential and industrial goods if the stalemate continues.

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