Talks to end the strike, which began early on Wednesday, collapsed after Highways and Road Transport Minister T R Baalu said it was not possible to roll back a hike in toll tax.

"Yes, the hike in toll tax in February was too much, but it was through an Act of Parliament... it is not possible to roll back the hike," Baalu told representatives of All India Motor Transport Congress in New Delhi.

"We will continue with the indefinite strike," AIMTC President Charan Singh Lohara told reporters after the meeting with the minister.

Baalu, however, said that his ministry has talked to the Petroleum Ministry on the truckers' demand for levying fixed duty on per litre of diesel instead of the prevailing ad-valorem duty and that a clarification was expected soon.

Separately, the Finance Ministry said it was open to offering concessions on service tax, another issue on which the strike action was called by transporters.

"According to a 2004 agreement, we were paying 12.36 per cent service tax on 25 per cent of the charges for transporting goods and it was paid by the traders. But now, the government is sending notices on 100 per cent chrges," Lohara said.

"We are ready to consider the demand of goods transport agencies for enhancing the abatement rate from the present level of 75 per cent," Central Board of Excise and Customs member (CBEC) V Sridhar told reporters.

Abatement rate is deducted from the total billing amount of service provider to arrive at tax liability.

AIMTC has also alleged that the government is encashing the international crisis on crude oil prices and forcing the truckers to buy premium diesel at higher and unregulated prices.

Baalu said that transporters would be provided whatever variety of diesel they want at normal rates and asked them to end their strike.

Refusing to call off their strike, AIMTC's Lohara said: "We are running on losses... the Minister is saying that if you are going on losses, then stop your business. So, we are stopping our business and continuing with the strike."

AIMT claims the support of all state transporters' association with a combined fleet size of 4.8 million trucks and about two million tempos.