Karnataka Raises Petrol And Diesel Prices By ₹3 Per Liter

Petrol and diesel prices in Karnataka have risen following the state government’s revision of the sales tax on Saturday. A recent gazette notification disclosed that the sales tax on petrol and diesel has been increased by 29.84% and 18.44%, respectively.

The Petroleum Dealers Association has indicated that these changes are expected to raise petrol prices by approximately ₹3 and diesel prices by about ₹3.05 in Karnataka, according to ANI. Consequently, petrol prices in Bengaluru have climbed to ₹102.84 per liter, up from ₹99.84. Diesel has also seen an increase, with the price rising from ₹85.93 to ₹88.95 per liter.

The hike in fuel prices has sparked concern among residents. Chandan, a local biker, expressed his worries to ANI, highlighting the financial strain on individuals earning modest salaries: “The rich can afford petrol, but where does that leave us? I work at a BPO, and now with a ₹15,000 salary, this price increase will have a significant impact.”

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The Karnataka government’s decision aims to boost state revenues. However, this adjustment is expected to have broader economic effects, particularly in sectors like transportation and logistics, which might pass on increased costs to consumers.

In related news, just hours before Karnataka’s tax revision, the central government reduced the windfall tax on domestically produced crude oil. The Special Additional Excise Duty (SAED) was cut from ₹5,200 to ₹3,250 per tonne. The tax on the export of diesel, petrol, and jet fuel has been maintained at zero.

These adjustments reflect ongoing evaluations of the oil market, with tax rates being updated biweekly based on the average oil prices from the preceding two weeks.