Bengaluru: Fuel prices in Karnataka have seen a significant rise after the state government implemented a tax hike on petrol and diesel effective from June 15. The decision, as per a notification issued by the state finance department on Saturday, increases the Karnataka Sales Tax (KST) from 25.92 percent to 29.84 percent on petrol and from 14.3 percent to 18.4 percent on diesel.
Currently, petrol in Bengaluru is priced at Rs 99.84 per litre, while diesel stands at Rs 85.93 per litre. This hike marks the first adjustment since November 2021, when the previous BJP government slashed petrol prices by Rs 13.30 per litre and diesel prices by Rs 19.40 per litre to stimulate economic recovery post-COVID-19.
The state government need to generate additional revenue, estimating an increase of approximately Rs 2,500 to Rs 2,800 crore in the current financial year. This decision follows the recent Lok Sabha elections and the commitment to fulfill financial obligations related to the implementation of the state’s five guarantees, expected to cost between Rs 50,000 crore to Rs 60,000 crore annually.
