Karnataka lorry drivers and owners call off strike after government accepts most of their demands

The strike was primarily driven by opposition to the recent hike in the diesel price. In June 2024, the diesel price increased by Rs 3 per litre, followed by an additional Rs 2 per litre hike effective from April 1, owing to the state government raising sales tax from 18.44 per cent to 21.17 per cent. This has resulted in a cumulative increase of approximately Rs 5 per litre over the past nine months, significantly raising operational costs for transporters.

While the government did not agree to roll back the hike given the revenue it generates for the state, Reddy agreed to finalise an alternative freight charge fixation mechanism within three months to address the impact of the recent diesel price hike. To offset the increased operational costs for truckers, the government has committed to standardising freight rates (the rates charged for transporting goods) to ensure the lorry industry remains viable. The mechanism, which is similar to the model of ride-hailing aggregator platforms, will likely involve standardising freight rates to absorb the fuel cost burden.

Importantly, the protesters had sought relief from the harassment by RTO officials at border checkposts. Reddy has assured the federation that he will take appropriate action to address their concern.

Truck owners were also protesting against the collection of tolls at 18 state highway toll booths, something that is unique to Karnataka.

Reddy speaking to the media said, “We will form a committee under the leadership of the transport commissioner and prepare a detailed report. We will study how other states have implemented this and substituted them with other revenue-generating models for the government.”

On the “no entry” restriction and limited morning window for lorries, especially medium-sized vehicles, Reddy assured that he would hold talks with the traffic police department to resolve the issue. He also said that directions will be issued to RTO officials to carry out physical inspections of vehicles by 8 am, in view of restrictions on heavy vehicles within Bengaluru city. “We will hold talks with the police department to relax the timings for medium-sized vehicles. We will direct transport officials to inspect the vehicles as part of the fitness certificate process within 8 am, to ensure movement of lorries will not cause traffic problems,” the minister said.

Reddy also said tractors using their agriculture permits for commercial purposes such as dumping construction waste would be strictly dealt with. “We will crack down on such tractors who transport debris and randomly dump it on the roadside,” he said.

Reddy also agreed to process online penalty payment methods for fines imposed on lorry drivers and owners by the Department of Safety Inspection for traffic and transport-related violations. He also agreed to offer a discount of 50 per cent on such penalties, subject to approval from the finance department and Chief Minister Siddaramaiah.

Additionally, the protesters also opposed the central government’s guidelines to increase the fitness certificate renewal fee to Rs 15,000 for vehicles over 15 years old. While this fee falls under state jurisdiction, the association demanded that Karnataka refrain from implementing it, as it disproportionately affects small and medium operators.

Reddy said the renewal fee revision would be kept in abeyance and that he would write to Union Road Transport and Highway Minister Nitin Gadkari about the lorry drivers’ opposition to the fee hike proposal.