Truck operators and transport contractors in Karnataka have urged both the Union and State governments to immediately intervene and ease the burden caused by the fourth consecutive hike in diesel prices, warning that continued increases would eventually impact the prices of essential commodities, retail goods, and overall supply chain costs across the State.

In a meeting convened by the Federation of Karnataka State Lorry Owners and Agents’ Association and the Retail Transport Contractors’ Association in Bengaluru on Wednesday, transport operators decided to formally write to the governments seeking measures such as suspension or reduction of toll collection on national highways and a cut in Value Added Tax (VAT) on diesel.

The associations said the continuous increase in fuel prices had pushed truck operators and drivers into severe financial distress and could trigger a rise in freight charges if no relief measures were announced soon.

G.R. Shanmugappa, president of the Federation of Karnataka State Lorry Owners and Agents’ Association and the Retail Transport Contractors’ Association, said that truck drivers and transport operators formed the backbone of the country’s logistics and supply chain network, and the rising diesel prices were affecting the entire sector.

Freight charges

“We initially considered increasing freight charges by around 10%, but that would directly affect the common man through higher prices of essential goods. Instead of immediately passing on the burden to consumers, we have decided to seek intervention from both the State and Central governments,” he said.

Mr. Shanmugappa said that the associations had requested the Centre to either suspend or substantially reduce toll collection for at least six months to help the transport sector cope with the rising operational expenses.

“Toll collections contribute only a portion of the government’s overall revenue. If the Centre provides temporary relief on toll charges, truck operators can avoid increasing freight rates and manage the situation for some time,” he said.

He further urged the Karnataka government to reduce VAT on diesel so that fuel prices could come down and provide relief to thousands of truck operators and drivers across the State.

Tough period

Ramappa K., a truck driver and owner of multiple trucks from Peenya, said that the transport sector was witnessing one of its toughest periods since the Covid-19 pandemic. “The diesel price hike has impacted us badly. We already suffered during demonetisation and the Covid-19 pandemic, and now we are facing another crisis-like situation. Earlier, a truck travelling from Bengaluru to Mumbai would take one or two days, depending on the load and route. Now, many trips are getting delayed because operators are struggling to arrange money for fuel in advance,” he said.

He said several drivers were being forced to temporarily halt operations or park their trucks until payments from customers were cleared. “We are running trucks only when we receive money. Otherwise, many vehicles remain parked. That is the current situation in the transport sector,” he added.

Another truck driver from Peenya, Shekhar M., said that the steep rise in diesel prices over the last 10 days had made it increasingly difficult for drivers and operators to earn a sustainable income. “The amount we spend on diesel has increased sharply, but freight earnings have remained almost the same. Our operational costs are rising every day, while our income is reducing. We contribute substantial revenue to the government through fuel taxes, GST, permits, and toll payments, but there is no direct relief for us despite rising expenses,” he said.