Karnataka CM Basavaraj Bommai hints at reducing taxes on petrol, diesel after by-polls

New Delhi, Oct 17: Karnataka Chief Minister Basavaraj Bommai on Sunday hinted at reducing cess and sales tax on petrol and diesel in the state to ease the fuel prices which have touched an all-time high.

Speaking to the media, Bommai said it all depends on the economy. "I have called an economic review meeting. If the economic situation seems to be good, there is all possibility for the consideration," he added.

Earlier, the Chief Minister had rejected any tax deduction on fuel in the state. Petrol and diesel price on Sunday has hiked again by 35 paise a litre and the auto fuels now cost a third more than the rate at which ATF is sold to airlines.

The price of petrol in Delhi rose to its highest-ever level of Rs 105.84 a litre and Rs 111.77 per litre in Mumbai, according to a price notification of state-owned fuel retailers.

In Mumbai, diesel now comes for Rs 102.52 a litre; while in Delhi, it costs Rs 94.57. With this rise, petrol is now at Rs 100-a-litre mark or more in all state capitals while diesel has touched the 100-mark in over a dozen states. Diesel crossed the Rs 100-a-litre mark in Bengaluru, Daman and Silvassa.