Bengaluru/IBNS: The Karnataka government on Tuesday announced a hike in sales tax on diesel, raising it from 18.44 percent to 21.17 percent.

This decision has led to an immediate increase in the price of fuel by Rs. 2.05 per litre.

With this increase, the diesel price has gone up to Rs. 91.02.

"After the approval of the Competent Authority, the Karnataka Sales Tax rate on diesel has been increased to 21.17 per cent, effective from 01-04-2025. As a result, there will be an increase of Rs 2 per litre, bringing the sale price to Rs 91.02," an official statement said.

The Karnataka Sales Tax rate on diesel was at 24 percent prior to November 4, 2021, and the price per litre was Rs 92.03.

On June 15, 2024, the Karnataka state government issued a notification revising the tax rate on diesel to 18.44 per cent.