Petrol, Diesel Price Hike In Karnataka Angers Drivers, Cab And Truckers, Association Demands Rollback

Karnataka government has taken the people by surprise by increasing sales tax on petrol and diesel, resulting in a price hike of Rs 3 and Rs 3.02, respectively. The decision has been met with strong opposition from various associations, including the Karnataka State Travel Operators' Association, Karnataka Federation of Truck Owners' Associations, and Ola, Uber Driver and Owners' Association.

According to the government notification, the Karnataka Sales Tax (KST) has been increased from 25.92 percent to 29.84 percent on petrol and from 14.3 percent to 18.4 percent on diesel. This has led to a significant increase in fuel prices, which has been condemned by the opposition.

Radhakrishna Holla, president of the Karnataka State Travel Operators' Association, stated that the price hike will further stress the travel industry, which is already struggling to stay afloat. "The government has to reconsider this decision and bring the prices down," he said.

Channa Reddy, president of the Karnataka Federation of Truck Owners' Associations, also expressed his concerns about the impact of the price hike on the trucking industry. "For nearly 10 days for every kilometre, owners will lose ₹1 as transportation prices have to be recharged," he said.

Tanveer Pasha, president of Ola, Uber Driver and Owners' Association, pointed out that the number of autos and cabs in the city is already decreasing due to a lack of business. With the hike in fuel prices, more drivers may quit their jobs or leave the city altogether.

The opposition has strongly condemned the increase in fuel prices and has announced plans to hold protests across the state. The BJP has also expressed its discontent with the move, citing it as an example of how the state government is burdening the common people with increasing taxes.

The state government's decision comes amid discussions about bringing petrol and diesel under Goods and Services Tax (GST). The move is seen as an attempt to generate additional revenue for the state government to fund its commitments under its five guarantees program.

The 5 guarantees program, launched by the Congress government last year, aims to provide benefits to various sections of society, including women, students, and unemployed individuals. The program has a total outlay of around Rs 52,000 crore for this financial year.

However, critics argue that the program's funding is being met through increased taxes on common people, rather than through effective resource mobilization or austerity measures. The series of price hikes by the state government has left many wondering if it is truly committed to fulfilling its electoral promises.

Series of Price Hikes

The Karnataka government has previously increased the guidance value of properties and imposed additional excise duty on Indian-made liquor and beer. A lifetime tax on electric vehicles priced above Rs 25 lakh has also been introduced. These measures, along with the recent fuel price hike, are part of the government's efforts to mobilize resources and meet its financial commitments.

The 2024-25 budget, with an outlay of around Rs 3,71,383 crore and a revenue deficit of around Rs 27,354 crore, reflects the government's strategy to generate revenue through various means. This fiscal year is expected to see annual borrowings exceeding Rs 1 lakh crore for the first time.