Rise in diesel prices would hit industries of all sizes, from small vendors to large establishments  Photo | Vinod Kumar T
Bengaluru

Traders in Karnataka warn price increase after diesel hike

Calling the hike unfair, traders and business owners say that they are being pushed to the brink, adding to the strain of an already inflation-weary economy.

Rishita Khanna

BENGALURU: After bearing the brunt of recent hike in milk price, toll charges, consumers are now set to face yet another blow as the cost of fruits, vegetables, and other essential commodities is set to go up. With diesel prices surging by over Rs 2, transportation costs are expected to rise, leaving traders and businesses with no choice but to pass the burden to consumers.

Calling the hike unfair, traders and business owners say that they are being pushed to the brink, adding to the strain of an already inflation-weary economy.

President of Bruhat Bangalore Hotels Association (BBHA) PC Rao called the diesel price hike a major blow to businesses, warning that it would hit industries of all sizes, from small vendors to large establishments. “Rs 2 is a big jump. Diesel is crucial for transporting raw material, fruits, vegetables, milk, and every essential supply, and its cost was already high. This hike will push expenses even further, leaving businesses with almost no profit every industry will feel the heat, and if this continues, many won’t be able to sustain themselves,” Rao said.

President of Federation of Karnataka State Private Transport Associations Nataraj Sharma slammed the government for the diesel price hike, calling it a deliberate move that will push industries to the edge and make life harder for people.“ it’s a chain reaction that will hit everyone. When diesel prices go up, transportation costs rise, making everything more expensive. This means industries will struggle, goods will cost more, and in the end, GST collections will increase — exactly what the government wants,” he said.

Calling it a sign of poor governance, trade activist Sajjan Raj Mehta slammed the government for failing to consult traders and industry leaders before imposing the diesel price hike.

“A hike in diesel drives up the cost of everything. We just saw a Rs 4 increase in milk prices, and now, hotels are already considering raising the price of coffee and tea. Fuel hikes give businesses a direct reason to increase prices, making essentials more expensive,” he said, adding that the move would worsen inflation and disrupt the economy.

“This won’t stop at price increases — it will also change how businesses operate. Many transporters will now choose to refuel in Tamil Nadu or Andhra Pradesh, where diesel is cheaper, rather than in Karnataka. This means a loss of revenue for the state and an even bigger financial strain on local businesses,” he added.

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