Defending the move to hike fuel prices in Karnataka, State Minister for Commerce and Industries MB Patil has asserted that this decision was made to fund the guarantee schemes and other developmental work in the southern state. Patil stressed that despite the increase in fuel rates in Karnataka, they remain lower than in other states.
“We need money for Guarantees and development, hence there has been an increase in fuel prices,” he said. The state government’s move, which has raised petrol prices by Rs 3 and diesel by Rs 3.5 per liter through increased sales tax, has sparked backlash from the opposition. Threatening statewide protests, BJP Karnataka President BY Vijayendra demanded that Chief Minister Siddaramaiah rescind the hike immediately.
“Faced by defeat in Lok Sabha polls, the chief minister is not ready to accept that the financial situation of the state has deteriorated, but the hike in fuel prices proves it. The government is unable to run the administration because of guarantees, they are unable to get proper resources….The government should withdraw this decision (of fuel price hike),” he said.
Earlier, the Finance Department of the state issued a notification increasing sales tax on petrol to 29.84% from 25.92%, and on diesel to 18.44% from 14.34%, aiming to generate between Rs 2,500 to Rs 2,800 crore in the fiscal year. This decision follows recent Lok Sabha election results, where the NDA won 19 out of Karnataka’s 28 seats.
Opposition leader R Ashoka slammed the Congress-led government, labeling the move as anti-people and claiming it penalises voters for supporting the BJP. He accused the government of depleting state funds with unsustainable guarantee schemes, while also pledging resistance against what he described as a burdensome tax on the people. The Congress government in the state has set aside Rs 52,009 crore for his government’s flagship five guarantee schemes this year.
The Congress government’s five guarantee schemes are 200 units of free power to all households, Rs 2,000 monthly assistance to the woman head of every family, payment of cash-in-lieu of the additional 5 kg of rice to every member of a BPL household, Rs 3,000 every month for unemployed graduate youth and Rs 1,500 for diploma holders for two years and free travel for women in public transport buses.
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