Petrol and diesel prices in Karnataka have spiked following the state's revision of sales tax on Saturday. According to a gazette notification, the government has increased sales tax on petrol by 29.84% and on diesel by 18.44%. This hike is expected to impact various sectors, including transportation and goods distribution, potentially leading to higher costs for consumers.

As per the Petroleum Dealers Association, petrol and diesel prices in Karnataka are likely to rise by approximately ?3 and ?3.05, respectively, ANI reported.

In Bengaluru, the price of petrol has surged by ?3, bringing the rate to ?102.84 per litre, up from the previous rate of ?99.84. Similarly, the price of diesel has increased by ?3.02, raising the cost per litre from ?85.93 to ?88.95.

"The rich can get petrol, where will we go? I work at a BPO. I will have to get petrol in ?15,000 salary? This will affect us vastly,? a biker named Chandan told ANI, expressing the financial strain the price hike will impose on everyday commuters.

The decision by the Finance Department of Karnataka aims to generate additional revenue for the state. However, the increase in fuel prices is likely to have a ripple effect across various sectors, including transportation and goods distribution, potentially leading to increased costs for consumers.

This state-level tax revision comes shortly after the central government reduced the windfall tax on domestically produced crude oil from ?5,200 per tonne to ?3,250 per tonne, as reported by PTI. The windfall profit tax was first imposed on July 1, 2022, targeting supernormal profits of energy companies. The tax rates are reviewed fortnightly based on the average oil prices in the preceding two weeks. Despite the reduction in windfall tax, the Special Additional Excise Duty (SAED) on the export of diesel, petrol, and jet fuel (ATF) remains at 'nil'.