BENGALURU: After increasing milk prices, power tariff, and bus and Metro fares, the state government has now increased the price of diesel by Rs 2 a litre. This will come into effect from Tuesday.
According to a press release, the sales tax on diesel has been increased from 18.4% to 21.17% with immediate effect. With this, the price of diesel will go up to Rs 91.02 per litre in the state. The government, however, defended its decision, claiming that even after this hike, the price of diesel in Karnataka will continue to be lower than neighbouring states.
The sales tax on diesel was 24% prior to November 2021 and the price per litre was Rs 92.03. In June last, the state government issued a notification revising the diesel tax to 18.44%. The hike is likely to have its impact on other sectors. The transport corporations will have to spend more on diesel purchases.
‘hike an additional burden on us’
Karnataka Transport Minister Ramalinga Reddy told The New Indian Express that the corporations can’t increase bus fares as they were revised recently. “We can only appeal to the government to give the hike of Rs 2 back to the corporations for the fuel they purchase,” he said. An official from the transport department said, “The state government has to give us Rs 2,000 crore to implement the Shakthi scheme. Now, with the diesel price hike, it’s an additional burden on us.”