Chief Minister Basavaraj Bommai made it clear that there was no proposal before the Karnataka government to reduce levies on petrol on the lines of neighbouring Tamil Nadu.
“There is no such proposal,” the Chief Minister said on August 17 while replying to a query by mediapersons on whether his government would emulate the neighbouring State with respect to the tax on petrol.
Tamil Nadu, which had earlier increased tax on petrol by ₹7 a litre, announced in its budget last week that it would reduce the tax by ₹3 a litre.
Citing this, the Opposition Congress had urged Mr. Bommai to reduce petroleum prices in Karnataka on the lines of Tamil Nadu.
Union Finance Minister Nirmala Seetharaman has maintained that States had gained more than the Centre from the higher fuel charges, hinting that they too can contribute towards reduction in petrol prices.
Mr. Bommai, who also holds the finance portfolio, ruled out such a possibility by stating that there was no such proposal before the government.
Sources in the government said that reduction in fuel prices was a difficult task at this moment as COVID-19 had delivered a twin blow to Karnataka.
“On the one hand, spending of the government towards health and related facilities as well as infrastructure has gone up due to the pandemic. At the same time, revenue has dwindled,” a source said.
The financial situation had become tighter as the new Chief Minister had announced some new schemes soon after taking over the reins of the administration, they said.
