Karnataka Chief Minister Siddaramaiah has stood firm in defense of the recent hike in petrol and diesel prices, emphasizing that even with the increase, rates in the state remain lower than those in neighboring states. The decision, which saw the sales tax on fuel raised immediately, resulted in a ₹3 rise in petrol prices and a ₹3.02 increase in diesel prices.
"We have increased VAT on petrol to 29.84% and on diesel to 18.44%," Siddaramaiah explained. "Yet, our state's taxes on fuel are still lower compared to most South Indian states and similar economy-sized states like Maharashtra."
Highlighting the disparity, the Chief Minister pointed out that Maharashtra, for instance, maintains higher VAT rates despite Karnataka's recent adjustments. "In Maharashtra, VAT on petrol stands at 25% with an additional tax of ₹5.12, while on diesel, it is 21%," he clarified.
Siddaramaiah also addressed comparisons with other states, noting that even after the hike, diesel prices in Karnataka remain lower than those in Gujarat and Madhya Pradesh. "Our commitment is to ensure reasonable fuel prices for our citizens," he affirmed.
In response, the opposition BJP has announced plans to organize protests statewide on June 17 against the fuel price hike. State BJP President B Y Vijayendra criticized the move, alleging that the previous BJP government in Karnataka had reduced VAT on petrol and diesel, only to see the central government raise its own taxes, resulting in reduced revenue for the state. As the debate intensifies, Karnataka navigates the balancing act between state revenue needs and consumer affordability amidst fluctuating fuel prices.