'Still lower than...': Karnataka CM Siddaramaiah defends petrol, diesel price hike as BJP plans protests

On Saturday, the Karnataka government increased the sales tax on fuel with immediate effect, raising petrol prices by Rs 3 and diesel prices by Rs 3.02.

Karnataka Chief Minister Siddaramaiah on Sunday (June 16) defended the recent hike in petrol and diesel prices, stressing that the revised rates remain lower than those in neighboring states. His defense comes as the Opposition BJP announced statewide protests scheduled for June 17.

On Saturday, the Karnataka government increased the sales tax on fuel with immediate effect, raising petrol prices by Rs 3 and diesel prices by Rs 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," said CM Siddaramaiah.

He noted that despite the hike, fuel rates in Karnataka are still lower compared to several other states, including Maharashtra, where the VAT on petrol is 25% with an additional tax of Rs 5.12, and the VAT on diesel is 21%.

"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.

Siddaramaiah criticized the previous BJP government, accusing it of manipulating taxes to benefit the central government at the expense of Karnataka. "The then 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. This manipulation led to reduced revenue for Karnataka, while the Central government collected more for its coffers, cheating Kannadigas," he said.