Kalaburagi: Amid the high fuel prices for both petrol and diesel across the country, the Karnataka government today announced a relief measure by announcing a decrease in the fuel charges in the state. Karnataka Chief Minister HD Kumaraswamy today announced that his government is taking a crucial step in this regard by announcing the reduction in prices of petrol and diesel by Rs. 2. The crucial decision comes at a time amid the Central government is being criticized by the opposition parties for high fuel prices scaling up day in and day out.
As of today, the price for Petrol touched Rs. 90 is not less than 11 towns in the state of Maharashtra.
“Everyday fuel prices are increasing, people of Karnataka felt that the state government can reduce the prices of fuel by reducing the taxes, I want to announce from Kalburgi that the coalition government has decided to cut down the taxes for petrol and diesel minimum by Rs. 2. I hope this step taken by our coalition government will give some relief to the people of Karnataka,” Mr Kumarasamy said in Kalaburagi.
After that came the announcement by the Chief Minister of Andhra Pradesh of a cut in tax for fuel in the state resulting in the reduction of prices by Rs. 2 per litre, but it cost the exchequer around Rs. 1,120 crores here.
Regarding the same issue, earlier this month, 22 opposition parties led by the Congress party held a nationwide protest which was popularly called as ‘Bharat Bandh’.
There have been several calls to reduce tax in the wake of rising oil prices due to the US Sanctions on Iraq and the slide of the rupee against the value of the dollar.
In our country, oil prices are directly connected to the cost of the crude oil in the international market. But after the import, both the Centre and the states levy taxes. The government at the Centre can reduce the fuel price by cutting down excise duty over it. But due to this Centre and state governments will have to bear the loss and the oil companies have to bear to directly.
But even some reduction in excise duty may result in the effective pricing of the fuel.
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