Last Updated:April 02, 2025, 10:13 IST
The Congress government in Karnataka has maintained that these hikes are necessary to boost state revenue and make Karnataka more competitive with its neighbouring states.

Karnataka BJP has strongly criticised price hikes, calling them part of a “Khata Khat model” — a tactic to drain money from the people’s pockets. (Image: PTI)
Since assuming office, the Karnataka Congress government has taken several measures to increase tax and fee adjustments across various sectors. The BJP, however, has strongly criticised these measures, calling them part of a “Khata Khat model" — a tactic to drain money from the people’s pockets. The BJP has launched a statewide protest today (April 2) to protest against these hikes.
BJP state president BY Vijayendra said that the Siddaramaiah government has “once again unleashed its insatiable greed, hiking diesel prices by Rs 2-3 per litre — a move that will further cripple the common man! Like the modern-day Bakasura, this government is devouring every last ounce of people’s hard-earned money, showing no remorse for the endless price hikes on essential commodities, including food."
“Hike after hike, betrayal after betrayal! The people of Karnataka trusted this government with a massive mandate, and in return, they are being crushed under the burden of skyrocketing costs. Is this the reward for their trust? The poor, the elderly, farmers, and salaried workers—all are suffering under the relentless hammer of this government’s anti-people policies. Every new decision squeezes them further, leaving them with no relief, no support, only pain! The sheer lack of empathy displayed by this government is appalling. They have dehumanized the lives of the people, draining them of every last resource, showing no concern for their struggles. Enough is enough! Karnataka BJP is launching statewide protests from tomorrow! We will not stop until these inhumane price hikes are rolled back! Karnataka deserves better—this exploitation must end," he posted on X.
“On one hand, they dole out guarantees, and with the other hand, they tax the people and take back double the amount," said a BJP leader, pointing to the rising costs.
The Congress government in Karnataka has maintained that these hikes are necessary to boost state revenue and make Karnataka more competitive with its neighbouring states. They argue that essential commodities like milk, diesel, and electricity are priced lower than in other states, but the growing tax burden is largely falling on the individual taxpayer.
These fare hikes have been implemented primarily to fund various welfare schemes and address the state’s increasing financial demands. From fuel to transport, healthcare to tolls, the hikes are beginning to hit the wallets.
Fuel Prices: A Steady Climb
Fuel prices have been among the most noticeable hikes in recent months. In June 2024, the state government increased the sales tax on petrol from 25.92 per cent to 29.84 per cent and on diesel from 14.34 per cent to 18.44 per cent. This led to a price hike of about Rs 3 per litre, pushing petrol to Rs 102.86 per litre and diesel to Rs 88.94 per litre. On April 1, 2025, diesel saw another price increase, with the Karnataka Sales Tax (KST) rising from 18.4 per cent to 21.17 per cent, leading to an additional Rs 2 to Rs 2.75 hike per litre. Despite these hikes, the government continues to claim that Karnataka still has the lowest diesel prices in South India.
Public Transportation: A 15 per cent Fare Increase
Karnataka’s state-run bus services also saw a significant adjustment. Effective January 5, 2025, a 15 per cent fare hike was implemented across all services operated by the Karnataka State Road Transport Corporation (KSRTC) and Bengaluru Metropolitan Transport Corporation (BMTC). This move, aimed at generating an additional Rs 7.84 crore per day, was designed to support the financially strained transport corporations, grappling with rising diesel costs and escalating staff salaries. The fare hike is expected to generate Rs 74.85 crore per month for these corporations.
The adjustment also extended to the Karnataka Sarige and Ashwamedha services, with rates increasing per kilometre. Despite criticisms from the BJP, who claim that the hike burdens male passengers while providing free rides for women under the Shakti scheme, the government stands by the increase, which is seen as necessary to maintain transport infrastructure.
Healthcare Fees: Hitting the Pocket
In November 2024, healthcare service fees were increased by 50 per cent to 100 per cent at state-run hospitals. Charges for outpatient registration, blood tests, and ward accommodations saw significant hikes. While the government justified the increase as a necessity for improving infrastructure and managing rising operational costs, the fee hikes have raised concerns among low and middle-income families, who rely on public healthcare services. For many, the rising healthcare costs are seen as a barrier to access essential treatment.
Milk Prices: Rising for the Third Time
Milk prices in Karnataka have also seen multiple hikes under the Congress government. After a Rs 3 per litre hike in July 2023 and Rs 2 per litre in June 2024, an additional Rs 4 per litre increase was approved effective April 1, 2025. With the price of Nandini milk now rising from Rs 44 to Rs 48 per litre, and Nandini curd seeing a Rs 4 hike per kilogram, this move is aimed at supporting dairy farmers facing rising production costs. Despite the hikes, the government assures that Karnataka’s milk prices remain competitive compared to neighbouring states.
Alcohol Excise Duty: A Bitter Sip
Alcohol consumption in Karnataka is set to cost more, as the 2024-25 budget introduced a 20 per cent increase in the Additional Excise Duty on Indian Made Liquor (IML) and a hike on beer duty from 175 per cent to 185 per cent. In January 2025, another excise duty hike saw beer prices rise across several brands. The new duty on mild beer has risen to Rs 12 per bulk litre, and strong beer is now taxed at Rs 20 per bulk litre. Consequently, retail beer prices have surged by Rs 10 to Rs 45 per bottle, with brands like Legend and Power Cool seeing price increases. The government justifies the hike as a step to make Karnataka’s alcohol taxation more competitive with neighbouring states, but industry experts have raised concerns about the potential decrease in sales and the impact on state revenue.
Toll Hikes: Paying More to Travel
On April 1, 2025, toll charges across Karnataka’s highways have increased by 3 per cent to 5 per cent. This adjustment, applied to key routes including the Bengaluru-Mysuru, Bengaluru-Tirupati, and Bengaluru-Hyderabad highways, follows the Wholesale Price Index (WPI) and reflects rising inflation and maintenance costs. Commuters travelling on the Bengaluru-Mysuru Expressway, for example, now face higher toll fees ranging from Rs 5 to Rs 10, depending on the vehicle type. The Sadahalli toll plaza, serving airport commuters, has also revised its toll rates. Cars and jeeps now face a Rs 5 hike for a single journey, while light commercial vehicles and minibuses have seen an increase of ₹10 per journey. These hikes are part of an annual toll rate revision aimed at funding highway maintenance.
Political Backlash and Criticism
The BJP has accused the Congress-led government of burdening the common man while implementing populist welfare schemes. Critics argue that the hikes — especially in healthcare, fuel, and transportation — are detrimental to the economic well-being of citizens, particularly the middle and lower-income classes.
R Ashok, Leader of Opposition in Karnataka, has slammed the state government for what he called its “bloodsucking" tactics, accusing the Congress administration of imposing a series of price hikes and taxes on essential goods and services. Ashok pointed out that while Chief Minister
Siddaramaiah had previously refrained from announcing any tax or price increases in the state budget, the reality was far different. “The warning I gave in the budget session that Kannadigas are in for a big shopping spree this year is now coming true literally," Ashok said.
“Diesel is the fuel used for transporting goods. Doesn’t Siddaramaiah, a self-proclaimed economist, know that if diesel prices increase, the prices of all essential goods and services, including milk, vegetables, fruits, groceries, and taxis, will rise," Ashok said.
The Leader of Opposition also spoke on the recent increase in bus ticket prices and the lack of financial resources to pay salaries to transport employees. “Now, there is no doubt that bus ticket prices will be increased again on the pretext that diesel prices have gone up," he added. Ashok warned that the people of Karnataka would not forgive the Congress government for its actions, accusing them of squeezing the poor and middle class.
However, the Congress government maintains that these measures are necessary to support the state’s financial health.
Location : First Published:April 02, 2025, 10:13 IST
News politics 'Enough Is Enough': Karnataka BJP Launches Protests Against Multiple Price Hikes By Siddaramaiah Govt