Karnataka hikes diesel prices by Rs 2 per litre as sales tax increases – Details inside

Diesel prices in Karnataka are set to rise following a 3 per cent increase in sales tax, effective April 1. The state government issued a notification on Tuesday (April 1), raising the Karnataka Sales Tax (KST) on diesel from 18.4 per cent to 21.17 per cent, as per multiple media reports.

According to the Akhila Karnataka Petroleum Dealers Association, diesel prices per litre may go up by Rs 2-2.75. Despite the hike, Additional Chief Secretary to the Chief Minister, LK Atheeq, stated that Karnataka still has the lowest diesel prices in South India. 

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Currently, diesel in the state is priced at Rs 88.99 per litre, while petrol costs Rs 102.92 per litre.

The increase in diesel prices is expected to drive up transportation costs, which could be passed on to consumers already struggling with rising expenses. The Congress-led state government is facing criticism over multiple price hikes.

Bengaluru cost of living to jump

Starting April 1, Bengaluru’s civic body, the Bruhat Bengaluru Mahanagara Palike (BBMP), will collect a user fee for solid waste management along with property tax. 

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Other recent hikes include a 15 percent increase in bus fares, a Metro fare rise of up to 71 percent, a Rs 4 per litre increase in milk prices, and higher electricity tariffs. Fixed charges for power will further increase by Rs 25 in 2025-26, Rs 30 in 2026-27, and Rs 40 in 2027-28.

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