PETROL AND DIESEL PRICES REDUCED RS 2 PER LITER: CM H.D.KUMARASWAMY

h-d-kumaraswamy

PETROL AND DIESEL PRICES REDUCED RS 2 PER LITER: CM H.D.KUMARASWAMY

BENGALURU: Barely a week after Andhra Pradesh and West Bengal announced a cut in fuel prices, Karnataka has decided to follow suit. Sources said chief minister HD Kumaraswamy is looking at reducing petrol and diesel rates by up to Rs 2.50 a litre and is expected to make an announcement later this week.

Sources said the CM instructed the finance department last week to consider reducing fuel prices. It is said the instructions were passed on after he reviewed resource mobilisation across the state following the announcement of the farm loan waiver. “During the meeting, resource mobilisation was reported to be brisk. The excise tax collection alone was up by 24-26%, giving a lot of respite to the exchequer,” said an official. “Further, money for the first quarter towards the farmer loan waiver has been dispatched to the banks.

Instructions were passed on to the finance department to work out a plan of action to reduce prices.” Also, political pressure was building on the HDK government after other non-BJP-ruled states announced tax cuts on fuel. Andhra Pradesh CM N Chandrababu Naidu has slashed tax on fuel by Rs 2.50 and Bengal CM Mamata Banerjee went for a Re 1 cut.
TOP COMMENT Wants to make Karnataka fuel prices lowest in the country. Good move ! It will get lot of support from the public. Shashidhar A Hegde, In Bengaluru, petrol costs Rs 84.59 a litre and high-speed diesel Rs 76.10. Sources said the finance department was likely to submit its report to the chief minister in two days. In July, Kumaraswamy had made a budgetary announcement to increase taxation on petrol and diesel by 2% each. The BJP has alleged that the state earns Rs 25 on every litre of petrol sold.

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