Karnataka to reduce petrol, diesel price

{image-petrol hike_17062008.jpg news.oneindia.in}Bangalore, Jun 17: The Karnataka cabinet, which is scheduled to meet on June 19, is likely to decide on reducing sales tax imposed on petrol and diesel to minimise burden on consumers, Home Minister V S Acharya said today.

Talking to newspersons here, he said the burden on the state government due to the increase in fuel prices would be around Rs 500 crore and the additional tax revenue expected was only Rs 380 crore. The tax imposed on aviation turbine fuel was 28 per cent as against 20 per cent in many states. The price of petrol in the state was Rs 42.75 per litre as against Rs 40 in many other states, he said.

Considering all these aspects, the government might reconsider the sales tax imposed on these products at the next cabinet meeting, he explained without specifying the quantum of reduction in prices.

The cabinet was also expected to discuss the price of LPG cylinders, he said.

The Home Minister said a meeting of the Empower Committee in New Delhi, under the Chairmanship of Ashish Das Gupta, had unanimously resolved to urge the Centre to shoulder half of the burden of the states with regard to hiked petroleum prices.

The next meeting of the Empower Committee would be held on June 21, he added.

UNI