Diesel prices increased in K’taka by Rs 2 per litre

Bengaluru

Diesel prices in Karnataka have been raised by Rs 2 per litre after the state government increased the sales tax on diesel by 3%. A government notification issued on April 1 announced that the Karnataka Sales Tax (KST) on diesel has been revised from 18.4% to 21.17%, making the new price Rs 91.02 per litre.

This marks the second increase in less than a year. In June 2024, the government raised the sales tax on petrol from 25.92% to 29.84% and on diesel from 14.3% to 18.4%, causing a price hike of Rs 3 and Rs 3.02 per litre, respectively.

The hike comes amid rising costs in several sectors, including property tax, electricity, and milk prices. Despite public backlash, officials maintain that diesel prices in Karnataka remain lower than in neighbouring states. The state government justifies the move as necessary for funding infrastructure and welfare projects.

Additionally, the Siddaramaiah-led government has implemented multiple other increases, including a 15% hike in bus fares, Metro fare hikes of up to 71%, and higher power tariffs over the coming years. Meanwhile, Bengaluru’s civic body, BBMP, will also begin collecting a user fee for waste management alongside property tax starting this month.