Transporters went on an indefinite strike from midnight after their talks with the government failed for the third time on Sunday.
The strike is expected to disrupt supplies of essential commodities.
"We have gone on a strike from midnight. We will continue our strike until our demands are met by the government," president All India Motor Transport Congress Charan Singh Lohra told PTI.
The striking transporters are demanding lowering of diesel prices by Rs 10 per litre, besides the withdrawal of service tax on truckers.
Transporters also want a moratorium on all instalments and waiver of interest on truck finance for at least six months.