Petrol Diesel Price Hike: Due to the state government’s increase in sales tax to 29.84% and 18.44%, the cost of gasoline and diesel is anticipated to rise in Karnataka. The Petroleum Dealers Association predicts that the price of gasoline and diesel in Karnataka will rise by around Rs. 3 and Rs. 3.05, respectively. Moneycontrol reports that the state government of Karnataka hiked taxes on gasoline and diesel on June 15 and that these increases will take immediate effect, resulting in a Rs 3 increase in fuel prices in the state. According to a state government statement on Saturday, the Karnataka Sales Tax (KST) has increased from 25.92 percent to 29.84 percent for gasoline and from 14.3 percent to 18.4 percent for diesel.
Fuel Price Surge
The All Karnataka Petroleum Dealers Association reports that the cost of diesel will rise to Rs 88.93 per litre and the cost of gasoline to Rs 102.85 per litre. The price increase will take effect immediately, according to a statement from the state finance department. According to KM Basavegowda, head of the All Karnataka Petroleum Traders Federation, we received the notification in the afternoon and adjusted our rates to reflect the revised fuel costs, he told Moneycontrol.
Previous Price Cuts
In Bengaluru, a liter of gasoline costs Rs 99.84, while a liter of diesel costs Rs 85.93. In an effort to boost the economy following the Covid-19 pandemic, the previous BJP Karnataka government lowered the price of gasoline and diesel by Rs. 13.30 and Rs. 19.40 per liter, respectively, in November 2021.
The Karnataka government, led by the Congress party, must spend between Rs 50,000 crore and Rs 60,000 crore a year to implement the five assurances, which coincide with the increase in fuel prices following the Lok Sabha elections. Sources claim that this fiscal year’s fuel price increase will assist raise between Rs. 2500 and Rs. 2800 crore.