Karnataka hikes diesel tax by ₹2/litre amid recent surge in milk prices, metro fares, and garbage tax | Bengaluru

Karnataka has announced a hike in diesel prices, adding to a series of recent increases in essential commodities, including milk, garbage tax, and metro fares. The state government has raised the sales tax on diesel to 21.17 per cent, resulting in a ₹2 per litre increase.

With this revision, the sale price now stands at ₹91.02 per litre, effective from April 1, 2025, news agency PTI reported.

An official statement noted that the Karnataka Sales Tax rate on diesel was previously 24 per cent before November 4, 2021, when the sale price per litre stood at ₹92.03. On June 15, 2024, the tax rate was reduced to 18.44 per cent. The latest hike, approved by the Competent Authority, brings it back up to 21.17 per cent.

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Despite the increase, Karnataka’s diesel price remains lower than its neighbouring states, the statement highlighted. As of March 31, 2025, diesel prices in other regions are higher: ₹94.42 in Hosur (Tamil Nadu), ₹95.66 in Kasaragod (Kerala), ₹97.35 in Anantapur (Andhra Pradesh), ₹95.70 in Hyderabad (Telangana), and ₹91.07 in Kagal (Maharashtra). In Bengaluru, the diesel price before the hike was ₹89.02 per litre.

This fuel price revision follows a series of price hikes across the state, affecting everyday expenses for residents.

Criticising the move, Leader of Opposition in the Karnataka Assembly, R Ashoka, accused Siddaramaiah-led Congress government in the state of imposing taxes on items one by one.

He alleged that the state government was increasing prices and “sucking blood of poor and middle class people.”

In a post on “X”, he said, “This poor @INCKarnaraka government has increased the price of milk, imposed a cess on garbage collection, and now it has suddenly increased the price of diesel by ₹2 per litre.”

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Check out his post here:

“Diesel is the fuel used for transporting goods. Doesn’t Siddaramaiah, a self-proclaimed economist, know that if the price of diesel increases, the prices of all essential goods and services, including milk, vegetables, fruits, groceries, taxis, will increase? Bus ticket prices were recently increased without money to pay salaries to transport employees.

“Now there is no doubt that bus ticket prices will be increased again on the pretext of diesel price hike. Siddaramaiah, have you been wondering which items should be taxed and which items should be increased in price?”, he added.

(With agency inputs)