Diwali Gift: Karnataka slashes taxes on petrol and diesel

Karnataka on Wednesday became the third BJP-ruled state to cut taxes on petrol and diesel by Rs 7.

Bengaluru (Karnataka): Karnataka on Wednesday became the third BJP-ruled state to cut taxes on petrol and diesel by Rs 7. With this, petrol is expected to cost Rs 95.50 a litre and diesel Rs 81.50. The reduced prices will come into effect from Thursday evening.

CM Bommai said this will cost the state exchequer an estimated Rs 2,100 crore. This follows the Centre's announcement to reduce excise duty on petrol by Rs 5 per litre and Rs 10 per litre on diesel from Thursday.

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Assam and Tripura were the other two states that also cut taxes on fuels by Rs 7. The finance ministry said the Rs 10 cut on diesel will come as a boost to farmers ahead of Rabi crop sowing. The lowering of prices of transport fuel is also expected to keep the general price rise in essential commodities under check.

It must be noted that the reduction in petrol and diesel prices comes ahead of elections in seven states, including the crucial Uttar Pradesh polls early next year.

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