The Karnataka government has issued a notification reducing the price of diesel and petrol by ₹7 per litre, following similar reduction of ₹10 and ₹5 respectively by the Centre.
The state government, in an official release, claimed that Karnataka is the first state to reduce sales tax on petrol and diesel.
With this, diesel prices were reduced from ₹104.50 on November 3 to ₹85.03, which is a reduction of ₹19.47. Petrol prices were reduced from ₹113.93 on November 3 to ₹100.63, which is a reduction of ₹13.30, the notification read.
Karnataka’s share of Sales Tax on Petrol is reduced from 35 to 25.9 percent and that on Diesel has been reduced from 24 to 14.34 per cent, by virtue of today’s notification, it said.
Buckling under pressure, the Centre on Wednesday had cut excise duty on petrol and diesel by ₹5 and ₹10 per litre to help bring down rates from their highest-ever levels, following which the state government had also announced its decision to reduce.
Earlier today, speaking to reporters in Hubballi, Karnataka Chief Minister Basavaraj Bommai said the state government had been contemplating reducing prices ever since fuel prices crossed the ₹100 mark, and it may cause an estimated loss of ₹2,100 crore to the state’s exchequer.
“After the central government’s decision to reduce fuel prices I spoke to the Union Finance and Home Minister and they expressed desire that the state slash the prices. I spoke to our senior officials and decided on it,” he further said.
The relentless increase in fuel prices had been severely criticised by Opposition parties, particularly Congress, which had demanded that the Centre reduce its excise duty.