With the latest fuel tax hike in the Southern state, petrol prices have risen by ₹3 per litre, reaching ₹102.84 in Bengaluru, up from ₹99.84. Similarly, diesel prices have increased by ₹3.02 per litre, now costing ₹88.95, up from ₹85.93.
According to the notification, the sales tax on petrol was increased from 25.92 per cent to 29.84 per cent, while the tax on diesel has risen from 14.3 per cent to 18.4 per cent by the state government. This significant rise in the sales tax has directly impacted the retail prices of both petrol and diesel across the state.
Also Read: Karnataka hikes petrol and diesel prices by ₹3 per litre. Check new rate, other details
The fuel price hike is likely to have a ripple effect on various sectors, including transportation and goods distribution, which can pass high costs to consumers. With the announcement, it was said that petrol and diesel prices may go up by ₹3 and ₹3.05 approximately in Karnataka as the state government decided to increase taxes on June 15, according to the Petroleum Dealers Association.
Karnataka CM supports fuel price hike
Karnataka Chief Minister Siddaramaiah defended a hike in petrol and diesel prices on Sunday, insisting that the revised rates were still lower than neighbouring states. The assertion came even as the Opposition BJP announced plans to stage protests across the state on June 17.
“The Government of Karnataka has increased VAT on petrol to 29.84 per cent and on diesel to 18.44 per cent. Even after this hike, our state’s taxes on fuel remain lower than most South Indian states and similar economy-sized states like Maharashtra,” said the CM.
Siddaramaiah noted that rates in other states including Maharashtra remained higher than Karnataka despite the hike. The VAT or value-added tax on petrol stood at 25 per cent in the western state alongside an additional tax of ₹5.12. The VAT on diesel stood at 21 per cent in Maharashtra. “Despite the VAT hike, diesel prices in Karnataka are still lower than in Gujarat and Madhya Pradesh. We remain committed to keeping fuel prices reasonable for citizens,” he added.
Also Read: Karnataka CM Siddaramaiah defends ‘reasonable’ fuel price hike as BJP plans protests: ’Still lower than…’
The senior Congress leader also accused the former double engine BJP government of “collaborating to divert Karnataka’s resources to other states”. He claimed that Kannadigas had been ‘cheated’ by the previous administration.
“The state BJP government kept reducing VAT on petrol and diesel while the Central government increased its own taxes. This manipulation led to reduced revenue for Karnataka, while the Central government collected more for its coffers,” he added. The Siddaramaiah government also urged the Centre to reduce these taxes for the benefit of the people.
Also Read: OMCs to hold petrol, diesel prices in Q1FY25; dismal earnings eyed over revised margins: Kotak’s Sumit Pokharna
Fuel Prices in India
The central government last lifted the freeze on the retail prices of petrol and diesel on March 15, 2024, for the first time in two years, ahead of the then-expected schedule announcement for the Lok Sabha elections 2024. Before this, fuel rates were last revised in April 2022.
With effect from Friday, March 15, the prices of petrol and diesel were reduced by ₹2 per litre across all states. The fuel price reduction came one week after cooking gas or liquified petroleum gas (LPG) prices were cut by ₹100 per cylinder and for the free connection cylinders under the Ujjwala scheme.
As of June 16, the cost of petrol in Delhi is ₹94.72 per litre and diesel is priced at ₹87.62 per litre. The petrol price in Mumbai continued to exceed the ₹100 mark, reaching ₹104.21 per litre, while diesel was priced at ₹92.15 per litre. After the latest fuel price hike in Karnataka, here’s how much petrol and diesel costs in your city:
Petrol Diesel Price Today In India (Check city-wise rates below):
Delhi: The cost of petrol in Delhi is ₹94.72 per litre and diesel is priced at ₹87.62 per litre. Currently, the Aam Aadmi Party (AAP) is in power in Delhi.
Mumbai: As of June 16, the cost of petrol in Mumbai is ₹104.21 per litre and diesel is priced at ₹92.15 per litre. Currently, the Eknath Shinde’s Shiv Sena faction in alliance with BJP is in power in the financial capital.
Chennai: The cost of petrol in Chennai is ₹100.75 per litre and diesel is priced at ₹92.34 per litre. Currently, the DMK – part of the INDIA bloc is in power in Tamil Nadu.
Kolkata: The cost of petrol in Kolkata is ₹103.94 per litre and diesel is priced at ₹90.76 per litre. Mamata Banerjee-led Trinamool Congress is in power in West Bengal.
Trivandrum: The cost of petrol in Trivandrum is ₹107.62 per litre and diesel is priced at ₹96.49 per litre. Currently the Communist Part of India (Marxist) is in power in Kerala.
Noida: The cost of petrol in Noida is ₹95.01 per litre and diesel is priced at ₹88.14 per litre. Currently, the BJP is in power in Uttar Pradesh.
Lucknow: The cost of petrol in Lucknow is ₹94.56 per litre and diesel is priced at ₹87.66 per litre. Currently, the BJP is in power in Uttar Pradesh.
Bengaluru: The cost of petrol in Bengaluru is ₹99.84 per litre and diesel is priced at ₹85.93 per litre. Currently, Congress is in power in Karnataka.
Hyderabad: The cost of petrol in Hyderabad is ₹107.41 per litre and diesel is priced at ₹95.65 per litre. Presently, the Congress is in power in Telangana.
Jaipur: The cost of petrol in Jaipur is ₹104.88 per litre and diesel is priced at ₹90.36 per litre. Currently, the BJP is in power in Rajasthan.
Bhubaneswar: The cost of petrol in Bhubaneswar is ₹101.06 per litre and diesel is priced at ₹92.64 per litre. The BJP is in power in Odisha.
How OMCs revise petrol, diesel prices in India
The government had passed on the responsibility of revising the retail prices of petrol and diesel to the three state-run oil marketing companies (OMCs) almost a decade ago. Typically, OMCs revise the fuel prices by taking into account the international crude oil prices and the rupee-dollar exchange rates.
India’s top refiner, Indian Oil Corp (IOC) refines crude oil into products like petrol, diesel, LPG, and aviation turbine fuels. It also makes petrochemicals and retails CNG. IOC owns and operates 10 oil refineries with a combined capacity of 80.6 million tonnes, making up for almost a third of India’s 251.2 million tonnes of refining capacity.
The OMC also owns 36,285 petrol pumps out of 86,855 pumps in the country. Besides, it owns half of the nation’s 25,386 LPG distributors. It runs 131 out of 283 aviation fuel stations in the country.
Additionally, as the second-largest OMC, Bharat Petroleum Corp Ltd (BPCL) boasts an established position and stands to benefit from receding crude prices. With sectoral tailwinds and a massive capex plan, BPCL is primed for a strong performance in the foreseeable future, according to analysts at StoxBox.
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Published: 16 Jun 2024, 06:56 PM IST
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