Karnataka HIKES Prices of petrol and diesel (Photo Credit: File Photo - PTI Image)
Fuel prices in Karnataka have gone costlier starting today. It is to be noted that the prices of petrol and diesel have gone up by Rs 1.60 and Rs 1.59 per litre, respectively. After the price revision, a litre of petrol costs Rs 71.97 and diesel Rs 64.41 in Bengaluru.
Karnataka Chief Minister B S Yediyurappa had on March 5 announced the decision to increase the rate of tax on petrol from 32 per cent to 35 per cent and diesel from 21 per cent to 24 per cent. He had further said that the hike in petrol and diesel rates are expected to fetch the government Rs 1,500 crore.
In the meantime, the prices of petrol and diesel have remained unchanged in the major cities across the country. The price of petrol is Rs 69.59 per litre in Delhi while it stands at Rs 75.30 per litre in Mumbai, Rs 72.29 per litre in Kolkata, and Rs 72.28 per litre in Chennai, respectively, reports ET. Diesel prices remain at Rs 62.29 per litre in Delhi, Rs 65.71 in Chennai, Rs 64.62 per litre in Kolkata and Rs 65.21 per litre in Mumbai.
Amid the slowing global growth and COVID-19 pandemic, the oil prices earlier plunged to their lowest level since 2002. The record decline in the oil prices came after US president Donald Trump extended social distancing guidelines, reported LiveMint. However, Saudi Arabia has continued with its surplus production targets. The Saudi Arabian Oil company (Saudi Aramco’s), the world’s largest oil producer, is likely to boost supplies to 12.3 million barrels per day in April.
The decline of USD 10 per barrel, would mean a saving of USD 15 billion in India’s import bill. In the financial year 2018-19, the oil import costed USD 111.9 billion which was USD 87.9 in the financial year 2017-18.
Earlier, the Modi government had hiked the excise duty on diesel and petrol by Rs 3 per litre. The special excise duty on petrol was hiked by Rs 2 to Rs 8 per litre in case of petrol while it was raised to Rs 4 in the case of diesel.