Truck operators from Karnataka urge govt to reduce tolls and VAT as diesel prices rise; no load increase for now

The associations have reportedly asked the center to either suspend or substantially reduce toll collection for at least six months to help the transport industry cope with rising operating costs. Photo credit: File photo

Truck operators and transport suppliers in Karnataka have urged both the Union and state governments to intervene immediately to ease the burden of the fourth consecutive hike in diesel prices, warning that the continued hike will eventually affect prices of essential commodities, retail goods and overall supply chain costs across the state.

In a meeting convened by the Karnataka State Federation of Truck Owners and Agents and Agents and Retail Transport Suppliers Association in Bengaluru on Wednesday, the transporters decided to formally write to the governments seeking measures such as suspension or reduction of toll collection on national highways and reduction of value added tax (VAT) on diesel.

The associations said the continuous increase in fuel prices has put truck operators and drivers in serious financial trouble and could trigger an increase in transport charges if no relief measures are announced soon.

GR Shanmugappa, president of the Karnataka Federation of Truck Owners and Agents Association and Retail Transport Suppliers Association, said truck drivers and transporters form the backbone of the country’s logistics and supply chain network and rising diesel prices are affecting the entire sector.

Shipping charges

“Initially, we were thinking of increasing transport charges by around 10%, but this would directly affect the common man through higher prices of essential goods. Instead of passing the burden on consumers immediately, we have decided to seek intervention from both the state and central governments,” he said.

Mr Shanmugappa said the associations have asked the Center to either suspend or substantially reduce toll collection for at least six months to help the transport sector cope with rising operating costs.

“Toll collection contributes only a part of the total government revenue. If the center provides temporary relief on toll, 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 can come down and provide relief to thousands of truck operators and drivers across the state.

A difficult period

Ramappa K., a truck driver and owner of several trucks from Peenya, said the transport sector is going through one of the toughest times since the Covid-19 pandemic. “The increase in diesel prices has hit us badly. We have already suffered during demonetisation and the Covid-19 pandemic and now we are facing another crisis. Earlier, a truck would take one or two days to travel from Bengaluru to Mumbai, depending on the load and the route. Now many journeys are delayed as operators struggle to secure fuel money in advance,” he said.

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

Another truck driver from Peenya, Shekhar M., said the spike in diesel prices over the past 10 days has made it difficult for drivers and operators to earn a sustainable income. “The amount we spend on diesel has increased sharply, but the revenue from transportation has remained almost the same. Our operating costs are increasing day by day while our revenue is decreasing. We contribute substantial revenue to the government through fuel taxes, GST, permits and toll payments, but there is no direct relief for us despite the rising expenditure,” he said.

Published – 27 May 2026 21:51 IST