With the price hike, the cost of petrol in Bengaluru now stands at ₹102.84 per litre, up from ₹99.84 per litre previously. Similarly, the price of diesel now stands at ₹88.95 per litre, up by ₹3.02 over the previous price of ₹85.93 per litre.
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The move by Karnataka’s Finance Department aims to generate additional revenue for the state. However, the price hike will directly and indirectly affect other sectors including transportation and goods distribution. The ripple effect is likely to increase prices for other commodities as well. The financial burden will fall onto the common man with many caught off-guard by the unprecedented announcement.
The Karnataka government’s decision comes just hours after the centre government reduced windfall tax on domestically produced crude oil from ₹5,200 per tonne to ₹3,250 per tonne, as per a PTI report. The Special Additional Excise Duty (SAED) tax on export of diesel, petrol and jet fuel has been retained at ‘nil’. SAED is a special tax on energy companies over supernormal profits. The Indian government first imposed windfall taxes on July 1, 2022.
Fuel prices have been largely dormant across the country. Fuel prices were last revised by the central government in March this year when it reduced petrol and diesel prices by ₹2 per litre in the run up to the General Elections 2024.
First Published Date: 15 Jun 2024, 18:39 PM IST