Karnataka became the fourth state in the country to reduce tax on fuel, with the state reducing the price of both diesel and petrol by Rs.2. The cost of petrol and diesel have been on an upward spiral of late, with prices breaching the Rs.90 (per litre) mark in certain areas.
The states of Andhra Pradesh, Rajasthan, and West Bengal had also cut VAT on fuel in the respective states. While fuel prices became cheaper by Rs.2.5 per litre in Rajasthan, they were cut by Rs.2 in Andhra Pradesh, and Re.1 in West Bengal respectively.
The Karnataka government has cut the sales tax on petrol and diesel by 3.25 per cent and 3.27 per cent respectively.
Following this move a litre of petrol in Bangalore now costs Rs.84.74 with diesel costing Rs.76.16 (as per IOC).
Petrol prices touched Rs.82.16 per litre today in New Delhi, an increase of 10 paise over Monday. A litre of diesel in the capital currently costs Rs.73.87, up 9 paise over Monday.
The petrol price has increased by around 15 per cent (in New Delhi) since the start of the year, with diesel becoming costlier by 22 per cent since January.
Sources: Economic Times, Times of India, Business Standard, News18