Petrol, diesel prices to rise as Karnataka slaps cess; setback to Rahul Gandhi’s campaign against costly fuel?

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Updated: July 5, 2018 12:56:20 PM

Petrol and diesel prices: Fuel prices will now be even costlier as the newly-elected Karnataka government has announced to hike cess on petrol and diesel by Rs 1.12 and Rs 1.14 a litre.

Petrol, diesel prices to get even costlier in Karnataka; Rahul Gandhi's Congress backed govt hikes cessPetrol, diesel prices to get even costlier in Karnataka; Rahul Gandhi’s Congress backed govt hikes cess

Petrol and diesel prices: Fuel prices will now be even costlier as the newly-elected Karnataka government has announced to hike cess on petrol and diesel by Rs 1.12 and Rs 1.14 a litre. Karnataka Chief Minister HD Kumaraswamy presented the Congress-JDS coalition government’s maiden budget on Thursday. Notably, Congress President Rahul Gandhi has been criticising the central government for the high tax on fuel prices.

The Karnataka government also hiked the tax on liquor by 4% and announced a farm loan waiver of Rs 34,000 crore. In the run-up to the recent assembly polls, the Kumaraswamy-led JD(S) had promised to waive farm loans borrowed both from cooperative and nationalised banks within 24 hours of coming to power.

Kumaraswamy, who also holds the finance portfolio, had earlier cited coalition compulsions and the need for studying the financial condition of the state as the reason for the delay in the announcement of loan waiver.

The Congress-JD(S) coordination committee constituted to oversee the smooth functioning of the government had on Sunday approved the Common Minimum Programme, which includes waiver of farm loans, creation of one crore jobs and allocation of Rs 1.25 lakh crore for irrigation over the next five years.

It also included construction of 20 lakh houses for homeless families in the state in the next five years, along with implementation of a universal health policy, ‘Arogya Karnataka’ of the previous government, among others.

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