Impact of guarantee schemes: State Government increases fuel prices

Statewide protest by BJP tomorrow

Bengaluru/Mysuru: Following the Congress-led State Government increasing Karnataka Sales Tax (KST) on petrol and diesel, the fuel rates in the State has gone up.

Accordingly, the rate of petrol in Mysuru which was Rs. 99.40 per litre has gone up to Rs. 102.41 per litre an increase of Rs. 3.01 per litre and the price of diesel which stood at Rs. 85.54 per litre has now shot up to Rs. 88.53,  an increase of  Rs. 2.99 per litre.

The Congress-led Karnataka became the first State to increase petrol and diesel prices after general elections. This move by the State Government is being largely viewed as a strategy to fund the Congress Government’s five guarantee schemes, including Shakti scheme (free bus travel for women), Gruha Jyoti (free electricity up to 200 units), Gruha Lakshmi (cash incentives for women), Anna Bhagya (free ration for poor households) and Yuva Nidhi (cash incentives for unemployed graduates).

Fuel prices were revised in November 2021, when the previous BJP-led State Government reduced petrol prices by Rs. 13.30 per litre and diesel by Rs. 19.40 per litre in view of the COVID-19 pandemic. In March this year, the Centre had reduced petrol and diesel prices by Rs 2 per litre. It was the first nationwide fuel price cut since May 2022.

The decision by the Finance Department of Karnataka aims to generate additional revenue for the State.  However, it is likely to have a ripple effect on various sectors, including transportation and goods distribution, leading to increased cost for consumers.

Protest tomorrow

Meanwhile, the BJP, urging the State Government to take back its order on fuel prices, will be staging a protest across the State tomorrow.

Addressing media persons here yesterday, BJP State President B.Y. Vijayendra said “Firstly, the financial situation in the State is deteriorating day by day and the Congress Government is facing difficulties to run the Government because of its ‘Guarantee Schemes’ and are unable to mobilise resources.”

The State Government has now increased the prices of fuel to fund its free schemes and the BJP will not sit quiet and has demanded to roll back the prices, Vijayendra said and added that the BJP will be staging a Statewide protest against the Congress Government tomorrow.