Petrol and diesel prices are likely to go up by ₹3 and ₹3.05 approximately in Karnataka as the state government decided to increase taxes on June 15, according to the Petroleum Dealers Association
According to the notification, the sales tax on petrol has been increased from 25.92 percent to 29.84 percent, while the tax on diesel has risen from 14.3 percent to 18.4 percent by the state government.
This significant increase in the sales tax has directly impacted the retail prices of both petrol and diesel across the state.
The move by the Finance Department of Karnataka aims to generate additional revenue for the state. However, it is likely to have a ripple effect on various sectors, including transportation and goods distribution, potentially leading to increased costs for consumers.
After the hike, the price of petrol per litre in Bengaluru will be ₹102.84, up from the previous rate of ₹99.84. Similarly, the price of diesel has increased by ₹3.02, raising the cost per litre from ₹85.93 to ₹88.95.
The immediate implementation of these new prices has caught many residents and businesses by surprise, prompting concerns over the financial burden it may impose.
Centre has cut the windfall tax on petroleum crude to 3,250 Indian rupees ($38.90) per metric ton from 5,200 rupees, effective June 15, according to a notification issued on Friday.
The tax, which is revised every fortnight, remained unchanged at zero for diesel and aviation turbine fuel.
India on June 1 cut the windfall tax on petroleum crude to 5,200 rupees per metric ton from 5,700 rupees.
From July 2022, India started taxing crude oil production and exports of gasoline, diesel and aviation fuel to regulate private refiners which wanted to sell fuel overseas instead of locally to gain from robust refining margins.
