Bengaluru, April 2 -- The Karnataka government on Tuesday raised the sales tax rate on diesel from 18.4% to 21.17%, resulting in a Rs.2 per litre price hike, effective April 1. With this revision, the price of diesel in Bengaluru rose from Rs.89.02 to Rs.91.02 per litre. The state government justified the move stating that, despite the increase, Karnataka continues to offer diesel at a lower rate than neighbouring states, where prices range from Rs.91.07 in Maharashtra to Rs.97.35 in Andhra Pradesh.

The government justified that increase as a necessary step to manage revenue shortfalls while maintaining competitive fuel pricing. A government order stated, "even after this increase, the revised sale price in the state will continue to be ...