Karnataka CM Bommai says not thinking of fresh cuts on fuel prices

"No, we have not yet thought about it," the chief minister said when asked if his government was considering any cut in fuel prices following the Centre's move.

Karnataka chief minister Basavaraj Bommai on Saturday said his government had not yet taken any decision on cutting tax on fuel prices. The Centre had recently reduced excise duty on petrol and diesel leading to calls for state governments to further bring down prices.

Karnataka chief minister Basavaraj Bommai (PTI)

"No, we have not yet thought about it," the chief minister said when asked if his government was considering any cut in fuel prices following the Centre's move.

However, days ago, Bommai had said his government will also consider further cuts in fuel tax in line with the Centre's move, while adding any decision in this regard will be taken after looking at the economy of the state.

On May 21, Union minister for finance Nirmala Sitharaman had announced a reduction in excise duty on petrol and diesel by ₹8 and ₹8 per litre, respectively. The move came after multiple hikes in petrol and diesel prices over the past few months.

The government also announced a subsidy of ₹200 per cylinder to Ujjwala Yojana beneficiaries. It will be valid for 12 cylinders a year.

In November 2021, the Karnataka government had cut sales tax on petrol from 35 per cent to 25.9 per cent and on diesel from 24 per cent to 14.34 per cent, which resulted in petrol prices being reduced by ₹13.30 per litre and diesel by ₹19.47 per litre.

Petrol and diesel prices remain unchanged in the state for the sixth day in a row on Saturday. The last time petrol and diesel prices declined was last Sunday.

In Bengaluru, petrol was selling at ₹101.94 per litre on Saturday, while the diesel was being sold at 88.36 per litre.

Fuel prices vary from state to state depending on local taxes. It also depends on fluctuations in the global crude oil prices and foreign exchange rates.