Karnataka: Petrol, diesel prices slashed by Rs. 2
What's the story
Following on the footsteps on Andhra Pradesh, West Bengal, and Rajasthan, the Karnataka government has now slashed fuel prices in the state by Rs. 2, even as petrol prices spiral in other parts of the country.
The decision came on Monday, following the finance department's review of fuel prices in the state, which was ordered by CM HD Kumaraswamy last week.
Here's more.
Decision
Details of the decision taken by HD Kumaraswamy
As petrol prices crossed Rs. 90 is as many as 11 cities in Maharashtra, the HD Kumaraswamy government ordered prices in Karnataka to be slashed.
Last week, after money for farm loan waivers was dispatched to banks, HD Kumaraswamy had ordered the Karnataka finance department to look into whether petrol and diesel prices in the state could be reduced.
Quote
Kumaraswamy announces the slashing of prices
"People of Karnataka felt that the state government can reduce the prices of fuel by reducing the taxes. I want to announce...that the coalition government has decided to cut down the taxes for petrol and diesel minimum by 2 rupees," announced Kumaraswamy.
Political pressure
The Kumaraswamy government was facing increasing political pressure
The move also comes at a time when political pressure was building up on the HD Kumaraswamy government, with non-BJP states like Andhra Pradesh, and West Bengal cutting fuel prices.
Earlier, Andhra Pradesh, West Bengal had cut fuel prices by Rs. 2, and Re. 1, respectively, while the Vasundhara Raje government in Rajasthan slashed prices by Rs. 2.50.
Fuel prices
The current fuel price scenario in India
Meanwhile, fuel prices continue to spiral in India, on the back of US sanctions on Iran, and the continued decline of the rupee against the dollar.
While oil prices in India are tied to global crude oil prices, state and central governments levy taxes over it.
Thus, in this situation, only a reduction in taxes can bring about a reduction in fuel prices.