Karnataka govt issues notification reducing tax on diesel, petrol by Rs 7 per litre

Bengaluru, Nov 5: The Karnataka government on Thursday issued a notification reducing the price of diesel and petrol by Rs 7 per litre, following similar reduction of Rs 10 and Rs 5 respectively by the Centre. The state government in a release claimed that Karnataka is the first state to reduce sales tax on petrol and diesel.

With this, diesel prices were reduced from Rs 104.50 on November 3 to Rs 85.03, which is a reduction of Rs 19.47. Petrol prices were reduced from Rs 113.93 on November 3 to Rs 100.63, which is a reduction of Rs 13.30, the release said.

Karnataka's share of Sales Tax on Petrol is reduced from 35 to 25.9 percent and that on Diesel has been reduced from 24 to 14.34 per cent, by virtue of today's notification, it added. Buckling under pressure, the central government on Wednesday had cut excise duty on petrol and diesel by Rs 5 and Rs 10 per litre to help bring down rates from their highest-ever levels, following which the state government had also announced its decision to reduce.

Earlier in the day, speaking to reporters in Hubballi, Chief Minister Basavaraj Bommai said the state government had been contemplating reducing prices ever since fuel prices crossed the Rs 100 mark, and it may cause an estimated loss of Rs 2,100 crore to the state's exchequer.

"After the central government's decision to reduce fuel prices I spoke to the Union Finance and Home Minister and they expressed desire that the state slash the prices. I spoke to our senior officials and decided on it," he added.