Karnataka government led by Chief Minister Siddaramaiah of the Congress party has decided to hike the prices of petrol and diesel. As per the announcement, petrol prices will go up by Rs. 3 per liter, while diesel rates will see a steep rise of Rs. 3.05 per liter.
This decision comes shortly after the Congress government in Punjab also increased electricity tariffs in the state. The fuel price revision in Karnataka will be implemented immediately and is aimed at boosting state revenues.
As per sources in the petroleum dealers association, the hike in taxes on petrol and diesel – sales tax on petrol increased to 29.84% from 27% and on diesel to 18.44% from 15.39% – will translate to a real term increase in pump prices of Rs. 3/liter for petrol and Rs. 3.05/liter for diesel across Karnataka.
This latest price increase is expected to put further financial strain on common citizens who are already facing inflationary pressures. Transportation costs are bound to rise for those relying on private or public modes of commute. Experts warn that the higher fuel costs may drive up prices of essential commodities as well.
The Congress government's decision to pass on the spiraling fuel costs to consumers in Karnataka comes despite people still recovering from the economic fallout of the COVID-19 pandemic and high unemployment levels in the state. With the new rates coming into effect immediately, citizens will have to deepen their pockets to cover their daily commuting and household needs.
