News Brief

'Congress Was Waiting For Elections To Get Over...': BJP Slams Siddaramaiah Government For Hiking Petrol, Diesel Prices In Karnataka

Swarajya Staff

Jun 15, 2024, 06:15 PM | Updated 06:24 PM IST

A petrol pump (Sushil Kumar/Hindustan Times via GettyImages)
A petrol pump (Sushil Kumar/Hindustan Times via GettyImages)

The Chief Minister Siddaramaiah-led Karnataka government has hiked the sales tax on petrol and diesel.

The move aims to boost revenue for the state, with the government expecting to generate between Rs 2,500-2,800 crore during the financial year, Deccan Herald reported.

With the hike, the cost of petrol is likely to go up by Rs 3 more and that of diesel by Rs 3.02.

The hike in sales tax amounts to 3.92 percentage points for petrol and 4.1 percentage points for diesel, according to a notification from the state finance department.

With the hike, the cost of petrol is likely to go up by Rs 3 more and that of diesel by Rs 3.5.

On 4 November 2011, the state government had reduced the tax rates on petrol to 25.92 per cent and on diesel to 14.34 per cent. With the hike, the rates are 29.84 per cent for petrol and 18.44 per cent for diesel, The Hindu reported.

This decision comes in the wake of the Lok Sabha election results, where the ruling Congress party faced disappointment after winning only nine out of the 28 seats in Karnataka.

The resource mobilisation measure comes just days after Chief Minister Siddaramaiah, who also holds the finance portfolio, conducted a review of the state's revenue generation and fiscal position.

Siddaramaiah government has allocated Rs 52,009 crore for the Congress' flagship 'guarantee' schemes this year, a significant increase from the Rs 37,325 crore spent on these schemes last year.

Meanwhile, the BJP has slammed the Karnataka Congress government for hiking the petrol, diesel prices.

"Karnataka government hikes petrol, diesel prices by Rs 3 per litre. Revised prices will come into immediate effect. The Congress was waiting for the elections to get over before it could fleece the people of Karnataka…," BJP IT cell chief Amit Malviya said in a post on X.

However, there are concerns in the government over resource mobilisation to meet the financial needs exacerbated by the ‘guarantee’ schemes, especially given the slowdown in revenue collections during the first quarter of the fiscal year due to the Lok Sabha election model code of conduct.

Earlier this week, while reviewing finances, Siddaramaiah asked officials to work harder towards meeting revenue collection targets.

Also Read: PM Modi To Release Rs 20,000 Crore For Farmers In Varanasi On 18 June, Taking PM-KISAN Disbursements To Over Rs 3.24 Lakh Crore

Get Swarajya in your inbox.