New Fuel Prices in Karnataka: Petrol and Diesel Up by Rs 3 Per Litre

New Fuel Prices in Karnataka

New Fuel Prices in Karnataka: The government of Karnataka's decision to increase the sales taxes on petrol and diesel has led to the increase of the price of petrol and diesel by Rs 3 and Rs 3.05 in Karnataka.

As per the Petroleum Dealers Association quoted by ANI, the Karnataka government has increased the sales tax on petrol from 25.92 % to 29.84 % and the tax on diesel has increased from 14.3 %to 18.4 % which has directly affected the price of petrol and diesel.

Reports say that the reason behind Karnataka’s government’s decision to increase sales taxes may be because the government wants to increase the revenues generated from petrol and diesel.

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The notice was released on June 15 and came into effect from Saturday onwards.

As soon as the development was imposed, the price of petrol recorded an increase of Rs 3 from Rs 99.84 to Rs 102.84 in Bengaluru and the price of diesel recorded an increase of Rs 3.02 from Rs 85.93 to Rs 88.95.

According to PTI, recently the Centre decided to lower the windfall tax on crude oil produced in the country from Rs 5,200 per tonne to Rs 3,250 per tonne.

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The last major fluctuation in fuel prices was in 2021 when the BJP government lowered the petrol and diesel prices by Rs 13.30 and Rs 19.40 per liter respectively to make the economy stable after the Covid-19 pandemic.

Money Control reported that a senior offer said that this major increase in sales taxes on petrol and diesel will generate a revenue of around Rs 2,500-Rs 2,800 crore in this fiscal year.

However, this sudden decision from the Karnataka government is also expected to affect various other sectors such as transportation and goods sectors.

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