Commuters in Karnataka are facing a fresh bout of sticker shock at the gas station, with fuel prices jumping significantly after a state government tax hike took effect today,


 June 15th. The Karnataka Sales Tax (KST) on petrol has spiked from 25.92% to 29.84%, while diesel faces a similar increase, going from 14.3% to 18.4%.

This move marks the first time fuel taxes have been adjusted since November 2021, when the previous administration slashed prices to aid the post-pandemic economic recovery. Currently, Bangalore residents are paying a hefty Rs 99.84 per liter for petrol and Rs 85.93 per liter for diesel.

The government justifies the tax hike as a necessary measure to generate additional revenue. Officials estimate an increase of Rs 2,500 to Rs 2,800 crore in the current financial year. This additional income is crucial to fulfill financial promises made during the recent elections,  including the ambitious "five guarantees" program, which carries an annual price tag of Rs 50,000 crore to Rs 60,000 crore.

While the government seeks to fill its coffers, Karnataka's motorists are left feeling the pinch. This tax hike comes at a time when inflation is already putting a strain on household budgets. It remains to be seen if the promised benefits of the "five guarantees" program will outweigh the immediate pain at the pump for Karnataka's residents.