Karnataka truckers launch indefinite strike over ₹2.05 diesel price hike

Over the past decade, diesel prices in Karnataka have seen several fluctuations driven by both central and state government policies

The Federation of Karnataka State Lorry Owners’ and Agents’ Association launched an indefinite statewide strike on Monday night in protest against the Congress-led Karnataka government’s decision to raise diesel prices by ₹2.05 per litre.

 

Association president GP Shanmugappa confirmed that trucks across the state, including those from outside Karnataka, would remain off the roads. Only vehicles carrying milk and other perishable goods are exempt from the strike.

 

Shanmugappa claimed that around six lakh trucks have joined the protest. “We are firm on our stand. The strike will continue until the government withdraws the diesel price hike,” he said.

 

 

Why are Karnataka truckers protesting?

 

The strike follows the state government’s decision to raise the sales tax on diesel from 18.44 per cent to 21.17 per cent, effective from April 1. This revision has led to a ₹2.05 per litre increase in diesel prices, significantly raising operational costs for transporters.

 

“Truckers are already burdened with high expenses — this hike is simply unacceptable,” said Shanmugappa.

 

In addition to rolling back the diesel price hike, the association is demanding the removal of toll charges on state highways, dismantling of RTO check posts at state borders, and the withdrawal of a Union government directive imposing a ₹15,000 fee for renewing a vehicle’s fitness certificate.

 

Government response

 

Karnataka Transport and Muzrai Minister Ramalinga Reddy expressed disappointment over the strike. He said he had engaged with truckers’ representatives and questioned their silence during previous fuel price hikes under the central government.

 

“In 2015, diesel was ₹49.54 per litre. Now it is ₹91.05. Under Manmohan Singh, crude was $140 per barrel and diesel cost ₹41.29 per litre. Under Modi, crude dropped to $60, but diesel rose to ₹91 per litre,” he said.

 

Reddy pointed out that Karnataka currently offers the lowest diesel prices in South India, apart from Puducherry. “In public interest, they should call off the strike,” he urged.

 

A decade of diesel price fluctuations

 

Diesel prices in Karnataka have experienced several shifts over the past decade due to both central and state-level tax changes.

 

In September 2012, the Centre raised diesel prices by ₹5 per litre. Despite a drop in global crude oil prices, the Modi government increased central excise duties, pushing prices higher. In November 2021, the Centre slashed excise duty by ₹10 per litre, prompting Karnataka to reduce its sales tax from 24% to 14.34%, bringing a total reduction of ₹19 per litre.

 

At the state level, Karnataka has adjusted diesel tax rates several times. In April 2016, the sales tax stood at 19 per cent, was briefly lowered in 2018, and increased to 21 per cent in 2019. During the pandemic in 2020, it rose to 24 per cent. A sharp reduction followed in 2021, but in June 2024, the rate increased to 18.44 per cent, leading to a ₹3.02 per litre price hike.

 

The latest revision, effective April 1, 2025, raised the tax to 21.17 per cent, triggering the ongoing strike.

 

(With inputs from agencies)