Karnataka Government Hikes Sales Tax On Petrol And Diesel, Prices Set To Surge

Karnataka Government Hikes Sales Tax On Petrol And Diesel, Prices Set To Surge

According to the notification from the Finance Department added that the sales tax on petrol has been raised from 25.92 per cent to 29.84 per cent, marking a 3.92 per cent point hike.

Oliviya KunjumonUpdated: Saturday, June 15, 2024, 07:31 PM IST
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Oil Companies Losing Close To ₹3 Per Litre On Diesel, Profit On Petrol Down | Image: Wikipedia (Representative)

The Karnataka government on Saturday announced a hike in sales tax on petrol and diesel. As a result of this, the prices of petrol and diesel are likely to increase by Rs 3 per litre and Rs 3.5 per litre respectively.

Details of the Tax Hike

This decision, with immediate effect, according to the notification from the Finance Department added that the sales tax on petrol has been raised from 25.92 per cent to 29.84 per cent, marking a 3.92 per cent point hike.

In the case for diesel, the sales tax has been increased from 14.34 per cent to 18.44 per cent, a 4.1 per cent point surge.

Impact on Prices in Bengaluru

In Bengaluru, the capital of Karnataka, petrol rates will now be Rs 102.84 per litre, up from the previous rate of Rs 99.84.

Moreover, the diesel rate will be increased from Rs 85.93 to Rs 88.95 per litre.

The decision follows after the recent Lok Sabha election results, where the NDA won 19 out of 28 seats in the state.

Cut in Windfall Tax

Recently, the Central Government has knocked off the windfall tax on domestically produced crude oil from Rs 5,200 to Rs 3,250 per metric ton, effective from June 15.

This tax is reviewed every two weeks. This latest revision did not change the tax rates for diesel and aviation turbine fuel, which remain at zero.

Petrol, Diesel Prices Remain

Petrol, Diesel Prices Remain | Image: File (Representative)

Fuel Prices Across Major Cities in India

Petrol Prices

Chennai - Rs 102.63

Kolkata - Rs 106.03

Mumbai - Rs 111.35

New Delhi - Rs 96.72

Diesel Prices

Chennai - Rs 94.24

Kolkata - Rs 92.76

Mumbai - Rs 97.28

New Delhi - Rs 89.62

The prices of the petrol and diesel across states and city to city can vary slightly due to factors such as local taxes, transportation costs, and state government policies.

Furthermore, the fuel prices can even fluctuate frequently based on global oil prices and domestic taxation.

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