Karnataka govt. to raise fuel price hike

17 Jun 2024 CW Team

The Karnataka government, which is governed by the Congress party, increased the local fuel tax, pushing up the price of petrol to Rs 100 and diesel to Rs 89 per litre. However, the rates are still lower than those in adjacent Andhra Pradesh, which has the most expensive gasoline in the nation, according to statistics from the oil sector. On June 15, the Karnataka government increased the local value-added tax, or VAT, on petrol from 25.92% to 29.84% and on diesel from 14.3% to 18.4%. As a result, a litre of petrol costs Rs 102.86 in Bengaluru, while a litre of diesel costs Rs 88.94. However, Karnataka's rates are still lower than those of Maharashtra and Andhra Pradesh, its neighbours. The most expensive petrol is found in TDP-BJP-controlled Andhra Pradesh, where a litre costs Rs 109.87. Kerala, which is ruled by the Left Democratic Front (LDF), has the second-highest petrol prices, at Rs 107.54. The Congress-led state of Telangana is not far behind, with a gallon of fuel costing Rs 107.39. Not far behind are the BJP-ruled states of Bhopal, Patna (where the BJP is in alliance with JD-U), Jaipur, Mumbai, and Bhopal, where the cost of fuel is Rs 106.45 per litre. In West Bengal, where Mamata Banerjee's TMC rules, a gallon of fuel costs Rs. 103.93. Industry pricing data indicated that Odisha (Rs 101.04 per litre in Bhubaneswar), Tamil Nadu (Rs 100.73 in Chennai), and Chhattisgarh (Rs 100.37 in Raipur) are the other states where fuel prices are more than Rs 100. Diesel costs roughly follow the same pattern, with Amaravati, Andhra Pradesh, selling the fuel for Rs 97.6, Thiruvananthapuram, the capital of Kerala, charging Rs 96.41, Hyderabad charging Rs 95.63, and Raipur charging Rs 93.31 per litre. Oil Minister Hardeep Singh Puri criticised the Congress-led Karnataka government for raising fuel prices, stating that petrol and diesel in the state were now priced Rs 3/litre higher than in BJP-ruled Uttar Pradesh and Gujarat. In a post on X, he remarked that this decision would lead to increased costs for essential goods such as food items, clothing, and medicines, as fuel price hikes directly impact overall prices. Puri highlighted the disparity, noting that Karnataka's petrol prices were Rs 8.21/litre higher than in BJP-run Uttar Pradesh and Gujarat, but did not specify rates in neighbouring BJP-ruled states. He emphasised a more significant gap in comparison to BJP-governed Arunachal Pradesh, where petrol prices were over Rs 12 per litre lower than in Karnataka. Similarly, the difference in diesel prices between the two states was Rs 8.59/litre, with Arunachal Pradesh being significantly cheaper. Puri further underscored that under the NDA government's management during global energy instability over the past three years, India diversified its crude oil purchases, resulting in a decrease in petrol prices by approximately 14% and diesel prices by nearly 11% from November 2021 to May 2024. He contrasted this with substantial price increases in the US, Pakistan, and Sri Lanka due to spikes in global crude prices during the same period. Additionally, Puri highlighted the Modi government's efforts to maintain the availability and affordability of transport fuels through significant cuts in excise duty in November 2021 and May 2022. He noted reductions of Rs 5 per litre for petrol and Rs 10 per litre for diesel in November 2021, followed by further cuts of Rs 8 per litre for petrol and Rs 6 per litre for diesel in May 2022. Puri also credited BJP-run state governments for aligning with pro-people policies by reducing sales tax on transport fuels to alleviate inflationary pressures. He cited examples such as petrol prices in Congress-ruled Telangana being Rs 12.76/litre higher than in BJP-run Uttar Pradesh and noted similar disparities in West Bengal, governed by the Trinamool Congress, compared to BJP-run Gujarat.

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