Petrol prices in Karnataka surged by Rs 3 per litre after the state government increased tax on petrol and diesel. The new prices came into effect from June 15, 2024. The authorities issued an official notification on Saturday and informed that the Karnataka Sales Tax (KST) has been hiked from 25.92 per cent to 29.84 per cent on petrol, and from 14.3 per cent to 18.4 per cent on diesel.
As per the Akhila Karnataka Petroleum Dealers Association, the cost of petrol increased to Rs 102.85 per litre after the revision, while revised prices of diesel stood at Rs 88.93 per litre. The state finance department issued the notification.
In Bengaluru, the price of petrol stood at Rs 99.84 per litre before the notification, while diesel was being sold at Rs 85.93 per litre.
According to a report by Moneycontrol, K M Basavegowda, President, Akhila Karnataka Federation of Petroleum Traders, noted, “We received the notification in the afternoon and recalibrated our prices according to the revised fuel prices.”
Notably, the last change in petrol prices was in November 2021, when the BJP state government slashed petrol prices by Rs 13.30 per litre and diesel prices by Rs 19.40 per litre. This was undertaken to help the economy recover post the COVID-19 pandemic.
The report cited a senior official in the finance department and said the price revision would help the government mobilise nearly Rs 2,500 crore to Rs 2,800 crore in the current fiscal year. To generate surplus revenue to fund guarantees, the state government also raised the guidance value of properties by 15 per cent to 30 per cent, and levied additional excise duty (AED) on Indian-made liquor (IML) by 20 per cent on all slabs. The government also thrust a 3 per cent additional cess on transport vehicles that are newly registered.
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