Karnataka government makes U-turn, increases petrol-diesel prices

Bengaluru: Karnataka government has increased the prices of petrol and diesel by almost Rs  2 per litre (Rs 1.14 on petrol, Rs 1.12 on diesel) again in less than six months of slashing them.

Within months of coming into power in May, Kumaraswamy government had increased the tax price of petrol and diesel on July 15, 2018 by Rs 2 per litre. Thus tax amount was increased from 30% to 32% in terms of petrol and 19% to 21% in terms of diesel.

This decision was met with severe criticism throughout the state. Soon, the government decided to reduce the rates by Rs 2 per litre on September 17, 2018. Thus, the tax on petrol was reduced to 28.75% from 32% and tax on diesel was reduced to 17.73% from 21%.

Meanwhile, the Centre too reduced the price by Rs 1.50 per litre of petrol in terms of Central Exercise Duty and asked the Oil Marketing Companies to reduce Rs 1 from the profit they were getting. The circular in this regard was sent on October 10, 2018.

However, the crude price of petroleum is decreasing in the international market since two months. This had affected the basic price of petrol and diesel, which led to the state government incurring heavy losses.

Accordingly, the prices applicable in July, 2018, have been brought back and people will have to shell out Rs 2 per litre of petrol and diesel additionally henceforth.

Here is the price of petrol, diesel after revision in Karnataka, when compared to other south Indian states.