Bengaluru: The Karnataka government on Monday announced a cut of Rs 2 in excise duty on petrol and diesel, making it the fourth state to bring down the soaring fuel rates after Andhra Pradesh, Rajasthan and West Bengal.
Petrol was selling at Rs 84.59 per litre in Bengaluru on Monday, while diesel was retailing at Rs 76.10 a litre.
"Today, this coalition government has decided to reduce both petrol and diesel prices by Rs 2 per litre," Chief Minister HD Kumaraswamy, who heads a JD(S)-Congress government, said while addressing an event.
Today, we are taking a decision that we are going to reduce Rs 2 on both petrol and diesel: Karnataka Chief Minister HD Kumaraswamy in Kalaburagi #Karnataka pic.twitter.com/COyYWzFAmy— ANI (@ANI) September 17, 2018
Former PM and Janata party leader Deve Gowda has replied to Kumaraswamy's tweet, calling the decision commendable.
It is a commendable decision by the Government of Karnataka to reduce fuel prices by around Rs.2 per litre.Well done @hd_kumaraswamy @CMofKarnataka @DrParameshwaraFurthermore, I urge @narendramodi to evaluate options on the table to reduce the financial burden on the people. https://t.co/lAW1m8dEty— H D Devegowda (@H_D_Devegowda) September 17, 2018
Fuel prices have been on an upward swing for weeks now with the Centre ruling out any cut in central taxes, while maintaining that rates would stabilise depending on the international market.
On Monday, petrol was selling at Rs 82.06 per litre and diesel at Rs 73.78 per litre in Delhi. In Mumbai, petrol cost Rs 89.44 a litre and diesel Rs 78.33 per litre.
Fuel prices in the country have been going up almost daily since August 1. They fell only once on August 13 and have been on record levels for nearly two weeks now. Sector experts say a weak rupee and high excise duty are major factors for the rise in fuel prices.
Inflationary risks along with broadly negative global cues depressed the Indian rupee to a new low of 72.74 on Tuesday.
Also, high global crude oil cost has become a major concern for the country, which imports over 80 per cent of its oil requirements. The UK Brent crude oil price hovers around $78 per barrel.
Since the start of the calendar year, the petrol price in Delhi has gone up by 15.4 per cent from Rs 69.97 on January 1, 2018. The hike in diesel price has been even more steep. It has gone up by 22 per cent since January 1 when it cost Rs 59.70.
As per the country's pricing mechanism, the domestic fuel prices depend upon the international fuel prices on a 15-day average and the value of the rupee.
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