Karnataka Government Increases Petrol, Diesel Tax Rates
A petrol droplet falls from a fuel pump. (Photographer: Martin Divisek/Bloomberg)

Karnataka Government Increases Petrol, Diesel Tax Rates

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Karnataka state government increased tax rates on petrol and diesel to 32 percent and 21 percent respectively on Friday.

The Congress-Janata Dal (Secular) government blamed the adverse impact on the state's revenues due to the fall in international crude oil prices for the decision.

Before the revision, the tax rates on petrol and diesel were 28.75 percent and 17.73 percent, respectively. The revised prices for petrol and diesel are Rs 70.84 per litre and Rs 64.66 per litre, respectively.

The revision has been made due to continuous fall in the prices of crude oil in the international market in the past two-and-a-half months, which has resulted in the base price of both fuels plummeting substantially, causing an adverse impact on state's revenue collection, the chief minister's office said in a statement.

Also read: Oil Companies Will Not Recoup Losses From Re 1 A Litre Subsidy On Petrol, Diesel

Despite the revision, the retail price of petrol and diesel in Karnataka are lower compared to neighbouring states, considering the base price of the fuels as on Jan. 01, 2019, it claimed.

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