Karnataka Fuel Price Hike: BJP Organizes Statewide Protest Today, HD Kumaraswamy Asserts Hike Will Affect State Finances

As the Karnataka government announced and effected a Rs. 3 hike in fuel prices the opposition parties declared a statewide protest today. The BJP-JD(S) alliance called it a revengeful move against the people of Karnataka for not supporting the Congress in the recently held LS polls. The opposition parties blamed the move as the Siddaramaiah’s government mismanagement of finances due to the guarantee schemes. Union Minister HD Kumaraswamy said that it will impact the state’s finances and eventually, will lead to inflation. They said that from food to travel everything will be impacted.

CM Siddaramaiah defended the decision and said that despite raising the tax on petrol to 29.84% and diesel to 18.44%, the fuel prices in the state continue to remain the lowest in the entire south and more affordable compared with BJP-governed Gujarat and Madhya Pradesh. He said, “We remain firm in our commitment to maintaining reasonable fuel prices for people. ”The CM blamed the BJP for reducing tax on petrol and diesel at the state level while increasing central taxes during the party’s double-engine government regime from 2019 to 2023. This calculated move diminished revenue for the state while the central government received more for its assets. He said that the excise duty on petrol and diesel reached to Rs. 32.98 and Rs. 31.83 respectively in May 2020 during the BJP government’s tenure. But the current central excise duty is Rs. 19.9 on petrol and Rs. 15.8 on diesel, Siddaramaiah added. 

Also Read: Karnataka Fuel Price Hike: Siddaramaiah Defends Government's Move Amidst Opposition Criticism

Siddaramaiah requested the central government to reduce these taxes for the benefit of the people. he administration has claimed that many inter-state losses were influenced by this move. A lot of border districts of the neighbouring states people have been entering Karnataka to fill their tanks due to petrol and diesel being available cheaper than in their states. The hike in fuel prices in Karnataka will hurt their economies. It was giving rise to a lot of black marketing as well in other neighbouring states. Forest and Environment Minister Eshwar Khandre has justified the hike saying the government has earmarked Rs. 52000 crore for guarantee schemes and revenue from the tax hike would be utilized for the welfare of the poor. He further said that the fuel price in Karnataka is still lower compared to that in Telangana, Kerala, Andhra Pradesh, and Maharashtra.