Karnataka CM Bommai says tax cut on petrol likely. Gives a timeline

Karnataka CM Bommai made the remarks as petrol and diesel prices were raised across the country for the fourth straight day on Sunday after a two-day pause.

Karnataka chief minister Basavaraj Bommai said on Sunday his government will decide on reducing petrol prices by effecting a tax cut after reviewing the state's economy. "I have already said it is dependent on the economy," Bommai, who also holds the finance portfolio, was quoted as saying news agency PTI. “After the by-polls, I will review the economy, at that time if the economy has improved, there is an opportunity for it,” Bommabi said in response to a question whether there is any proposal to reduce taxes on petrol in Karnataka.

Karnataka chief minister Basavaraj Bommai said the decision will be taken after the bypolls in the Sindagi and Hangal assembly constituencies.  (File Photo)

The Karnataka chief minister was referring to the by-polls to be held in the Sindagi and Hangal assembly constituencies in the state on October 30. The counting of votes will take place on November 2.

Bommai’s comments came as petrol and diesel prices were raised across the country for the fourth straight day on Sunday after a two-day pause. Petrol in Bengaluru is being sold for ₹109.53, up ₹0.37, for every litre on Sunday and consumers are paying ₹100.37 for the same amount of diesel.

This is the second time this month that the Karnataka chief minister has said that his government will soon take a decision on reducing the duty on petrol and diesel amid the rising prices of fossil fuels across the country. “We will take a look at our financial position, revenues and then make a decision. Let us see,” Bommai said on October 10.

Petrol and diesel prices were raised by ₹0.35 to ₹105.84 per litre and ₹ ₹94.57 per litre respectively in Delhi. The rates of petrol and diesel were increased by ₹0.35 in the national capital for the fourth consecutive day. In Mumbai, petrol prices increased by ₹0.34 to ₹111.77 and that of diesel went up by ₹0.37 to ₹102.52 per litre.

In Kolkata, petrol rises witnessed a hike of ₹0.33 to ₹106.43 while the cost of diesel increased by ₹0.35 to ₹97.68 per litre. Consumers in Chennai will have to pay ₹103.01, up ₹0.31, for petrol and ₹98.92 for diesel, which was increased by ₹0.33.

Oil companies started raising auto fuel prices over a week ago. The pause on the prices on October 12 and 13 came after a seven-day consecutive rise.

On Saturday, Union minister of petroleum and natural gas Hardeep Singh Puri said that the consumption of petrol and diesel has increased as compared to the pre-Covid times. "Today, the consumption of petrol and diesel is higher by 10-15 per cent and 6-10 per cent respectively compared to pre-Covid times. I will not go into the price issue. We continue to work towards the price stability,” Puri said.

(With agency inputs)