Karnataka govt hikes petrol, diesel prices in state by Rs 3 per litre

BENGALURU: The Karnataka government has announced an increase in the prices of petrol and diesel, effective immediately from Saturday. The increase in price comes following an official notification from the Government of Karnataka, which indicates a revision in the sales tax levied on petroleum products.

The price of petrol has surged by Rs 3, bringing the cost per litre in Bengaluru to Rs 102.84, up from the previous rate of Rs 99.84. Similarly, the price of diesel has increased by Rs 3.02, raising the cost per litre from Rs 85.93 to Rs 88.95. According to the Petroleum Dealers Association, the price has increased because the state government has revised the sales tax in the state, which is levied on petroleum products in the state.

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. The immediate implementation of these new prices has caught many residents and businesses by surprise, prompting concerns over the financial burden it may impose.