The price of every liter of diesel in Karnataka has increased by 2 rupees. This revision has come into effect from midnight on April 1. The state government has raised the sales tax imposed on each liter from 18.44% to 21.17%. As a result, fuel prices have risen irrationally.
Primarily, the increase in diesel prices has automatically led to a rise in the cost of essential daily commodities, fruits and vegetables, transportation fares, hotel food prices, construction material rates, and the prices of stationery used by students. Just a few days ago, the Karnataka state government raised the prices of milk, curd, and electricity. This has made it extremely difficult for the common people to manage their lives.
Price hikes are not unusual. However, there should be a logical reason behind them. They should not burden the common people. Observing the price increases that have occurred in Karnataka since the Congress government came to power in 2023 until now is astonishing. Without considering whether the income of the common people has increased, the prices of essential items continue to rise.
In this context, the question arises: Is Karnataka the most expensive state in the country? Looking at the available data from 2023 to April 2025, it becomes clear what kind of expensive state it is. This varies regionally within the state. Living in Bengaluru city is the most expensive. Compared to this, other districts, although not as expensive, are still costly. Districts like Mysuru, Mangaluru, and Belagavi are more expensive than other districts, except Bengaluru!
Let’s examine Bengaluru Urban district. It is the most expensive in Karnataka. The major expense here is rent. Depending on the locality, the monthly rent for a single-bedroom house ranges from 7,000 to 15,000 rupees. For a very small two-room house with a small hall, kitchen, and bathroom (double bedroom), the monthly rent ranges from 15,000 to 30,000 rupees.
Food and grocery expenses range from 5,000 to 20,000 rupees. Electricity (although domestic electricity up to 200 units is free, each household must pay if they consume more than their previously determined average units; recently, electricity tariffs have also increased), internet, and water costs amount to between 3,500 and 5,000 rupees per month.
Compared to cities like Delhi and Chennai and other metropolises, Bengaluru Metro travel fares are expensive. The fares for BMTC and KSRTC buses have also significantly increased. As a result, a substantial portion of the earnings of working individuals and students is spent on transportation costs. These figures apply to an average family of four living in a single-bedroom house. Depending on the circumstances, these costs only increase, never decrease.
In Bengaluru Urban district, the per capita income in 2022-23 was 621,131 rupees. Even now, on average, there has been no significant increase. This income is higher compared to other parts of Karnataka! For many (for example, software professionals), the average monthly salary is around 20,000–30,000 rupees as a basic salary. However, this varies from sector to sector. Still, this amount is insufficient to cover the high cost of living.
Increases in travel fares (for example, a 75% hike in Metro fares and a 15% increase in KSRTC bus fares) and the rising costs of necessities like milk and property tax continue to burden people, leaving both lower and higher income groups frustrated.
Now, let’s look in detail at other urban centers (Mysuru, Mangaluru, Hubballi-Dharwad): These cities are less expensive than Bengaluru. However, they are still more expensive than the state average! For instance, the cost of living in Mysuru and Mangaluru is 20–30% lower than in Bengaluru. Rents here average between 4,000 and 15,000 rupees monthly, and food/grocery expenses range from 4,000 to 10,000 rupees.
In districts like Dakshina Kannada (Mangaluru) and Udupi, per capita income is higher. However, due to fewer job opportunities compared to Bengaluru, income inequality persists. Transportation and utility costs are rising here, and infrastructure development is delayed. This also affects the standard of living of the common people.
The cost of living in rural and semi-urban areas (for example, Kalaburagi, Raichur, Vijayapura) is significantly lower, with monthly expenses (including rent) generally less than 10,000 rupees for a family. Food and utility costs are also low.
Importantly, the per capita income here is very low (for example, Kalaburagi’s annual per capita income in 2022-23 was 124,998 rupees, the lowest in Karnataka). Agriculture is the primary livelihood. Income here averages less than 15,000 rupees monthly. There is a lack of basic infrastructure. Job opportunities are limited. Rural areas face issues with health and quality education.
Primarily, compared to Mumbai, the capital of Maharashtra, the cost of living in Bengaluru city is slightly lower. However, compared to other major cities in South India, Bengaluru’s cost of living is higher. When compared to other parts of Karnataka and other South Indian states (excluding their capitals), Karnataka as a state is expensive.
Not just year by year, but month by month, the cost of living in Bengaluru and other parts of the state continues to rise. The Congress government in Karnataka spends an annual average of 56 crore rupees on guarantee schemes. To offset this massive expenditure, taxes in all sectors are being increased. Apart from this, no new industries are being created, no improvements are being made in the standard of living, and no upgrades are being done to basic infrastructure. Human development has become a mirage. With all this happening, the diesel price hike implemented by the state government effective from April 1, 2025, will make life even more expensive for the people of Karnataka.
