Karnataka Govt raises taxes on petrol and diesel: How does it affect you?

Team Udayavani, Jun 15, 2024, 5:01 PM IST

Bengaluru: The state government has ordered an increase in the sales tax on petrol and diesel immediately after the conclusion of the Lok Sabha elections. This has come as a shock to vehicle owners who had been enjoying stable fuel prices for the past one and a half years.

The price of petrol and diesel has been increased by three rupees per liter in the state.

The sales tax was previously increased in April 2020 and reduced in November 2021. To allocate resources for the state’s guarantee schemes and to mitigate the shortage of funds for other development projects, the state government has now imposed a three-rupee hike per liter of fuel.

Implications:

Due to the increase in fuel prices, the cost of goods transportation, KSRTC, private bus, and taxi fares will rise. This burden will directly fall on the passengers.

Fuel price rise has a direct bearing on inflation, especially on food. There is a high possibility that prices for fruits, vegetables, milk, and hotel food items will also increase.

Fares of public transport systems are likely to be revised. There are apprehensions that if KSRTC bus fares go up, the number of male passengers might decline. Since travel is free for women, a reduction in male passengers could impact the department’s revenue.

Fuel Prices in Bengaluru:

• Petrol: Previous Price – ₹99.83, Revised Price – ₹102.85
• Diesel: Previous Price – ₹85.93, Revised Price – ₹88.93
• Power Petrol: Previous Price – ₹106.66, Revised Price – ₹109.89

Fuel Prices in Udupi:

• Petrol: Previous Price – ₹99.53, Revised Price – ₹102.55
• Diesel: Previous Price – ₹85.62, Revised Price – ₹88.61

Fuel Prices in Mangalore:

• Petrol: Previous Price – ₹99.01, Revised Price – ₹102.01
• Diesel: Previous Price – ₹85.15, Revised Price – ₹88.13