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Diesel prices in Karnataka are set to increase after the state government announced a 3% hike in sales tax on diesel, making the revised rate 21.17% from the previous 18.4%, effective from April 1. The increase is expected to raise diesel prices by approximately ₹2 per litre, pushing it above the current price of ₹88.99 per litre.
Karnataka Still Has the Cheapest Diesel in South India
Despite the hike, LK Atheeq, Additional Chief Secretary to the Chief Minister of Karnataka, stated that Karnataka still has the lowest diesel prices in South India. Currently, diesel costs ₹88.99 per litre, while petrol is priced at ₹102.92 per litre.
Impact on Transportation and Rising Costs
With the increase in diesel prices, transportation costs are expected to rise, potentially affecting consumer prices across various sectors. Businesses relying on diesel-powered transportation may pass on the additional costs to customers, further adding to the rising cost of living in the state.
Previous Fuel Price Hikes in Karnataka
The last fuel tax increase occurred in June 2024, when the Karnataka government raised the sales tax on petrol from 25.92% to 29.84% and on diesel from 14.3% to 18.4%, leading to a price rise of ₹3 per litre for petrol and ₹3.02 per litre for diesel.
Public Backlash Over Price Hikes
The Siddaramaiah-led government is facing criticism for a series of price hikes in the state, affecting essential services:
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BBMP User Fee: Bengaluru’s civic body, BBMP, will now collect a user fee for solid waste management along with property tax from households.
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Public Transport Costs: Bus fares have increased by 15%, and Metro fares saw a hike of up to 71%.
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Milk Price Hike: Milk prices have increased by ₹4 per litre.
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Electricity Tariff Increase: Fixed electricity charges will rise by ₹25 in 2025-26, ₹30 in 2026-27, and ₹40 in 2027-28.
As fuel costs go up, Karnataka residents may face additional economic pressure, raising concerns over affordability and inflation in daily expenses.
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