Sales tax on diesel hiked by ₹2 per litre

The Karnataka government on Tuesday raised the sales tax rate on diesel from 18.4% to 21.17%, resulting in a ₹2 per litre price hike, effective April 1. With this revision, the price of diesel in Bengaluru rose from ₹89.02 to ₹91.02 per litre. The state government justified the move stating that, despite the increase, Karnataka continues to offer diesel at a lower rate than neighbouring states, where prices range from ₹91.07 in Maharashtra to ₹97.35 in Andhra Pradesh.

A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas/Files (HT Archive)

The government justified that increase as a necessary step to manage revenue shortfalls while maintaining competitive fuel pricing. A government order stated, “even after this increase, the revised sale price in the state will continue to be lower compared to the neighbouring states.”