From Nandini milk to Namma Metro: How Bengaluru’s cost of living has skyrocketed in a year | Bengaluru

A recent online discussion was sparked when a Bengaluru-based tech professional lamented that his high salary was still not enough to meet the city’s rising cost of living. While some argued that better financial planning could help manage expenses, others pointed out that government-driven price hikes had significantly strained household budgets. From transportation and fuel to milk and toll charges, multiple essential services have seen a surge in costs over the past year. HT.com takes a closer look at the financial burden Bengaluru residents are facing.

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Metro fare hike: Commuters pay the rice

One of the most significant increases in expenses has been in Namma Metro fares. In February this year, the Bengaluru Metro Rail Corporation Ltd (BMRCL) revised its pricing structure, pushing the maximum fare from ₹60 to ₹90. Additionally, the minimum balance required on smart cards has doubled from ₹50 to ₹90. With thousands of daily commuters relying on the metro, the 50-90% fare hike has added a substantial financial strain on Bengaluru residents.

BMTC bus fare surge hits daily commuters

Public transport users also had to bear additional expenses after the Karnataka government approved a 15% hike in fares for state-owned transport corporations in January. This led to increased ticket prices for Bengaluru Metropolitan Transport Corporation (BMTC) buses, which are a crucial mode of transport for daily commuters. The price of an ordinary daily pass increased from ₹70 to ₹80, while the weekly pass saw a hike from ₹300 to ₹350. The ordinary monthly pass now costs ₹1,200, up from ₹1,050, further affecting students and regular passengers.

Nandini milk prices continue to rise

Milk, a staple in most households, has also seen multiple price hikes over the past year. The Karnataka Milk Federation (KMF) announced another increase in Nandini milk prices, raising the cost by ₹4 per litre, effective April 1. This follows previous hikes of ₹3 per litre in July 2023 and ₹2 per litre in June 2024. As a result, a one-litre packet of Nandini toned milk, which cost ₹40 last year, is now priced at ₹46. While Nandini claims its rates are still lower than competitors like Amul and Heritage, consumers have felt the pinch of these recurring hikes.

Toll fees increase on key routes

Commuting through Bengaluru’s major highways has become costlier as the National Highways Authority of India (NHAI) raised toll charges from April 1. Travelers heading to Kempegowda International Airport or using the Satellite Town Ring Road (STRR) are now paying higher toll fees. Rates at key toll plazas, including Sadahalli (NH 7) and Hulikunte and Nalluru Devanahalli (NH 648), have been revised upward by 5%. The 119-km Bengaluru-Mysuru Expressway has also implemented a toll hike, further increasing travel costs for commuters.

Fuel prices add to the burden

Fuel prices have also surged in the past year. Since June 2024, petrol prices have increased by ₹3 per litre, reaching ₹102.84 per litre in Bengaluru, while diesel has seen a similar ₹3.02 hike, bringing the price to ₹88.95 per litre. The Karnataka government’s decision to revise sales tax rates on petrol and diesel contributed to this rise, making daily commutes and transportation of goods more expensive.

Additional charges on new vehicles

Purchasing a new vehicle in Karnataka has become pricier due to an additional registration cess introduced in January. Buyers of two-wheelers now pay an extra ₹500, while car owners incur an additional ₹1,000 in registration fees. This move was implemented under the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, 2024, to generate funds for welfare schemes benefiting transport sector workers.

Power tariffs set to increase

Electricity costs are also on the rise. The Karnataka Electricity Regulatory Commission (KERC) has approved a hike in fixed charges for the next three years, affecting both households and businesses. These revised rates will start reflecting in electricity bills from May. However, beneficiaries of the state government’s Gruha Lakshmi scheme, which offers free electricity, will remain unaffected.

Alcohol prices among the highest in South India

Liquor prices in Karnataka have been revised multiple times over the past two years, making it the most expensive state for alcohol in South India. Price hikes have been attributed to various factors, including increased taxes and levies imposed by the state government.

The burden of inflation prompted state MLAs and ministers to approve a salary hike for themselves, citing increased expenses. The ruling Congress government has defended these hikes, arguing that revenue generated from these measures is being used to fund its flagship welfare schemes. The five guarantee schemes, which played a crucial role in the party’s victory in the 2023 Assembly elections, continue to be a focal point of political debate. Meanwhile, opposition parties BJP and JD(S) have strongly opposed these price hikes, though their protests have yet to yield any rollback in government decisions.

As Bengaluru residents grapple with these rising costs, the discussion around affordability and financial planning continues. While some believe better budgeting could help manage expenses, others argue that many of these hikes are unavoidable and imposed by the government.