Karnataka Hikes Diesel Tax, Prices to Surge by Rs 2

Diesel prices in Karnataka will rise sharply after the state government increased the Sales Tax (KST) on diesel by 3 percent, effective April 1. According to the official notification issued on Tuesday, the KST on diesel has been raised from 18.4 percent to 21.17 percent. This hike is expected to add around Rs 2 to the price of diesel, which currently stands at Rs 88.99 per litre, pushing the cost to Rs 91.02. Petrol, on the other hand, is priced at Rs 102.92 per litre in the state. As per the Akhila Karnataka Petroleum Dealers Association, this increase will likely affect transportation charges, leading to higher costs for essential goods like vegetables and fruits, further burdening consumers already grappling with rising prices.

The recent hike in diesel prices follows a similar move by the Karnataka government in June 2024, when the state increased the KST on petrol and diesel, resulting in a Rs 3 to Rs 3.02 increase per litre. The latest change in diesel pricing comes at a time when neighboring states have slightly higher fuel rates, with diesel priced at Rs 94.42 in Hosur, Tamil Nadu, and Rs 95.66 in Kasaragod, Kerala. The new tax structure is expected to make the state's diesel prices among the highest in the region, and consumers are bracing for a further strain on their budgets as the ripple effects of this price surge spread across various sectors.