Karnataka Raises Diesel Sales Tax, Increasing Price by Rs 2 Per Litre

The new tax rate of 21.17% brings diesel prices to Rs 91.02 per litre, still lower than in neighboring states, but critics warn of economic strain on essential goods and services.

Effective April 1, 2025, Karnataka increased the sales tax on diesel from 18.44% to 21.17%, raising the price by Rs 2 per litre to Rs 91.02.
The government emphasized that diesel prices in Karnataka remain lower than in neighboring states, where prices range from Rs 91.07 to Rs 97.35 per litre.
This marks a reversal from the 2024 tax cut, which had reduced diesel prices by lowering the tax rate to 18.44%.
Opposition leader R Ashoka criticized the hike, arguing it will disproportionately burden the poor and middle class while increasing costs for essential goods and public transportation.
Diesel, a critical fuel for transportation and logistics, is expected to have cascading economic effects, with potential increases in prices for milk, vegetables, and bus fares.