Transporters rejected the ministers' request for deferring their strike saying that the government had nothing to offer. "They asked us to wait for a month. But we cannot ply our trucks since we are making a loss of Rs 12,000 per month."

In a separate press conference, S Narayan, secretary (petroleum), and Ashok Joshi, secretary (road transport and highway), said that the strike was unwarranted. "As of now, there will be no going back on diesel prices hike," said Narayan.

Surface transport ministry officials are peeved with the transporters for not approaching the ministry before giving the strike call. But the transporters claim that they had given enough time to the government. "We have been seeking an appointment with even the prime minister which has not been granted so far," said Agarwal.

The transporters have also been on a relay hung strike since October 17.

Agarwal claims that a truck covers on an average 210-220 km per day consuming 70 litre diesel in the process. "With imposition of Re 1 cess we were making Rs 3,000 loss per month and now with 35 per cent increase we will incur at least Rs 12,000 loss per month. So, for a transporter it is better to sit at home."

Though AIMTC claims that they are not in a position to absorb the increase in fuel price, freight rates have already gone up in most places.

AIMTC claims that the strike call will be complete. However, some transporters said that they would like to continue with work but feared that they would be forced to join the strike.

In a letter to the Prime minister, AIMTC cited levy of toll charges as another major problem faced by the transporters.

Agarwal said due to recession in the economy, the industry was suffering from an idle capacity of about 19 per cent. "We are not in a position to absorb the 18 per cent direct increase in operating costs in addition to the 10 per cent indirect increase due to increase in cost of tyres, lubricants and taxes."

Narayan added that there were economic reasons for the hike. The international diesel prices have gone up by 66 per cent since March 1999 while domestic prices have increased by just 35-40 per cent. "The hike is important to maintain price parity with international levels," he said. Joshi said the states have been asked to draw up a contingency plan to face any situation arising out of the strike and maintain supply of essential commodities.

He said the government was willing to help out the transporters with regard to long-term contracts by providing for "escalation" in service charges on par with the hike so that increased cost could be passed on to the consumers.

Agarwal maintained that any talks with industry chambers, especially Ficci, would be no help. He said knowing that transport industry has spare capacity, chambers have welcomed the hike. Asked whether transporters would be agreeable to a partial rollback, Agarwal said, "When there is no such offer from the government side how can we consider it?"

He said the government was prompt in increasing prices whenever the international diesel prices went up but did not pass on the advantage when the prices decreased.

Narayan said the government had revised the diesel prices nine times since the decision to maintain international parity in 1997 of which the prices had been decreased three times."The oil pool deficit will shoot up to Rs 10,000 crore if the hike is rolled back", he said.