Karnataka Chief Minister Siddaramaiah defended a hike in petrol and diesel prices on Sunday, insisting that the revised rates were still lower than neighbouring states. The assertion came even as the Opposition BJP announced plans to stage protests across the state on June 17. The Karnataka government hiked sales tax on fuel with immediate effect on Saturday — increasing petrol prices by ₹3 and diesel prices by by ₹3.02.
“The Government of Karnataka has 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,” the CM said.
Siddaramaiah noted that rates in several other state including Maharashtra remained higher than Karnataka despite the hike. The VAT on petrol stood at 25% in the western state alongside an additional tax of ₹5.12. The VAT on diesel stood at 21% in Maharashtra.
“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 added.
The senior Congress leader also accused the former double engine BJP government of “collaborating to divert Karnataka's resources to other states”. He claimed that Kannadigas had been ‘cheated’ by the previous administration.
“The state BJP government kept reducing VAT on petrol and diesel while the Central government increased its own taxes. This manipulation led to reduced revenue for Karnataka, while the Central government collected more for its coffers,” he added.
The Siddaramaiah government also urged the Centre to reduce these taxes for the benefit of the people.
Meanwhile the BJP has announced plans to stage protests across Karnataka on June 17.
“We urge the Chief Minister to withdraw this decision immediately. Tomorrow we have organised protests across the state and we are not going to keep quiet till the hike is revoked. After the Lok Sabha elections, they (Congress government) have increased fuel prices. This will cost all sections of people in the entire state,” Vijayendra told PTI.
(With inputs from agencies)
