Fuel becomes cheaper in Karnataka

Motorists and cooking gas users in Karnataka have received some relief from the recent fuel price hike after the B S Yeddyurappa-led State Government marginally slashed the sales tax and value added tax (VAT) on petrol, diesel and Liquefied Petroleum Gas (LPG).

While petrol has become cheaper by Rs 1.35 for every litre, price of diesel has come down by 65 paise for a litre. Cooking gas consumers will now have to pay Rs 10.34 less for every cylinder of LPG.

According to the revised prices, which came into force from yesterday, cost of petrol in Bangalore is Rs 57.15 per litre and diesel Rs 39.15 per litre. The cost of one LPG cylinder is now Rs 348.08.

Earlier this month, the prices of fuel went up sharply when petrol became dearer by Rs 5 per litre, diesel by Rs 3 per litre and cooking gas by Rs 50 per cylinder, triggered widespread bitterness among the people.

Bowing to public pressure, the state cabinet met in Bangalore on Thursday and decided to reduce the sales tax and VAT with a view to restrict the burden of the recent hike in fuel prices effected by the Federal Government.

Karnataka’s Minister for Rural Development and Panchayat Raj Shobha Karandlaje, who briefed reporters about the cabinet decision, said the sales tax on petrol, which had been fixed at 28 per cent, had been brought down to 25 per cent while the sales tax on diesel had been reduced from 20 per cent to 18 per cent. Similiarly, VAT on LPG had been brought down from four per cent to just one per cent, she said.

The reduction in taxes will lead to an annual revenue loss of Rs 2.75 billion to the state exchequer, she claimed.