Petrol, diesel price hike for funding public services, developmental works, says CM

Bengaluru, Jun 16: Strongly defending the Congress government’s decision for increasing the prices of petrol and diesel throughout Karnataka with effect from Saturday, June 15, Chief Minister Siddaramaiah on Sunday said the price hike was to fund “essential public services and developmental works.”

Siddaramaiah, has in a press statement, said the government had increased VAT on petrol to 29.84% and on diesel to 18.44%.

“Even after this hike, our state’s taxes on fuel remain lower than most South Indian states and similar economy-sized states like Maharashtra,” he said.

In Maharashtra, the VAT on petrol is 25% plus Rs 5.12 additional tax, and on diesel, it is 21%.

“Karnataka’s revised rates are still more affordable,” he explained.

Siddaramaiah also mentioned that, “Despite the VAT hike, diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh. We remain committed to keeping fuel prices reasonable for our citizens.”

He explained that the previous “Double Engine BJP government collaborated to divert Karnataka's resources to other states. The state BJP government kept reducing VAT on petrol and diesel while the Central government increased its own taxes.”

The Chief Minister said the “manipulation” by the “Double Engine BJP government” led to reduced revenue for Karnataka, while the Central government collected more for its coffers, cheating Kannadigas.

The Central Excise duty on petrol was Rs 9.48 per litre and Rs 3.56 on diesel before BJP came to power in 2014.

However during the tenure of BJP Government, the Central Excise Duty on Petrol and Diesel was steeply increased reaching to a record high of Rs 32.98 and Rs 31.83, respectively, in May 2020.

Subsequently, the Excise duty on petrol and diesel was cut by Rs 13 a litre and Rs 16, respectively, between November 2021 and May 2022.

Despite the reductions, the current central excise duty on petrol is Rs 19.9 and on diesel is Rs 15.8.

“We urge the Union Government to reduce these taxes for the benefit of the people,” he said explaining that Karnataka’s VAT adjustment ensures we can fund essential public services and development projects.

The state remains committed to balanced and responsible governance, he added.