Diesel Prices Surge in Karnataka: Rs 2 Hike Effective Immediately

Diesel prices in Karnataka will increase after the state government hiked the sales tax on diesel by 3 percent on April 1, with immediate effect.As per the state government notification on Tuesday, Karnataka Sales Tax (KST) on diesel has been increased from 18.4 percent to 21.17 percent.

According to the Akhila Karnataka Petroleum Dealers Association, diesel prices per litre may increase by around Rs 2.

Additional Chief Secretary to the Chief Minister of Karnataka LK Atheeq told Moneycontrol that diesel prices in Karnataka are still the cheapest in South India, even after the sales tax hike. In Karnataka, diesel is priced at Rs 88.99 per litre, while petrol costs Rs 102.92 per litre. The hike in diesel prices will push up transportation charges, which are likely to be passed on to customers—leading to an increase in the prices of essential commodities, including vegetables and fruits, further burdening consumers already affected by rising costs.

It may be recalled that the Karnataka state government, in June 2024, had increased Sales Tax (KST) on petrol from 25.92 percent to 29.84 percent and on diesel from 14.3 percent to 18.4 percent, which led to an increase in the prices of petrol and diesel per litre by Rs 3 and Rs 3.02, respectively.