The Karnataka government has announced a hike in petrol and diesel prices, set to take effect from Saturday onwards.
The increase follows a revision of the sales tax imposed on petroleum products by the state government.
As a result, petrol prices will rise by Rs 3 per litre, elevating the cost from Rs 99.84 to Rs 102.84. Diesel prices will see a similar increase, going up by Rs 3.02 per litre, from the previous rate of Rs 85.93 to Rs 88.95. The Petroleum Dealers Association has attributed this price hike to the state's revised sales tax policy.
According to the official notification, the sales tax on petrol has been raised from 25.92% to 29.84%, while the tax on diesel has increased from 14.3% to 18.4%. This substantial tax hike has directly impacted the retail prices of petrol and diesel across Karnataka.
The Karnataka finance department's decision to raise the sales tax is aimed at generating additional revenue for the state. However, this move is expected to have significant repercussions on various sectors, such as transportation and goods distribution, potentially leading to increased costs for consumers.
The abrupt implementation of the new prices has caught many residents and businesses off guard, prompting concerns about the financial strain it may impose.
The opposition BJP has sharply criticized the state government for the timing and impact of the price hike.
BJP spokesperson S Prakash expressed his discontent, stating, "The Siddaramaiah-led Congress government has steeply increased diesel and petrol prices in this state. Soon after the Parliament elections are over, this hike has been brought. People were expecting Rs 8500 khatakhat in their bank accounts as promised by Rahul Gandhi. On the contrary, they have been hugely burdened by the increase in petroleum products. This is an outcome of guarantee schemes pursued by the State Govt. The State Govt is financially bankrupt, they are trying to extract revenue from whatever is available."
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