Karnataka CM Siddaramaiah defends fuel price hike; opposition parties to protest today

BENGALURU: A day after the Karnataka govt effected a Rs 3 increase in motor fuel prices with immediate effect, chief minister Siddaramaiah Sunday defended the decision fuelled by the tax revision amid ramped-up calls by the opposition parties for a statewide protest starting on June 17 till the hike is rolled back.
In a statement, Siddaramaiah said fuel prices in Karnataka - despite raising tax on petrol to 29.84% and diesel to 18.44% - continue to remain the lowest in the entire south and "more affordable" compared with BJP-governed Gujarat and Madhya Pradesh.
"We remain steadfast in our commitment to maintaining reasonable fuel prices for our citizens," he said.
The CM accused BJP of reducing tax on petrol and diesel at the state level, while increasing central taxes during the party's 'double-engine govt' regime from 2019 to 2023. "This calculated manipulation resulted in diminished revenue for Karnataka, while the central govt received more for its coffers, thereby deceiving Kannadigas," he claimed.
According to the statement, the excise duty on petrol and diesel reached record highs of Rs 32.98 and Rs 31.83, respectively, in May 2020 during the BJP govt's tenure. Despite subsequent reductions, the current central excise duty stands at Rs 19.9 on petrol and Rs 15.8 on diesel.
Siddaramaiah urged the Union govt to reduce these taxes for the benefit of the people.
Tax rejig needed for funds: CM
The CM defended Karnataka’s tax rejig, stating it was necessary to ensure sufficient funds for essential public services and development projects undertaken by the govt – a shorthand for funding signature welfare projects started by the Congress last year.
The BJP-JD(S) alliance called it an act of “revenge” against the people of Karnataka for “not supporting” Congress in the recent LS elections, in which it scored less-than-expected 9/28. It attributed the fuel-price decision to the Siddaramaiah govt’s “mismanagement of finances” due to guarantee schemes. Union minister HD Kumaraswamy said this will negatively impact the state’s finances, leading to inflation.