Bengaluru,(DHNS): In a big relief, the state government on Monday brought down the prices of petrol and diesel by Rs 2 per litre with effect from Tuesday. With this, petrol will now cost Rs 82.80 per litre in Bengaluru, while diesel will be available at Rs 74.21 per litre. The government has reduced sales tax on petrol by 3.25% and diesel by 3.27% for this purpose.

The current fuel rates are the lowest in Karnataka when compared to the neighbouring states of Andhra Pradesh, Tamil Nadu, Kerala and Maharashtra. The H D Kumaraswamy government has been under pressure following the recent Bharat Bandh by Congress and other non-NDA parties in protest against the Centre for the steep increase in fuel prices.

The rates have been climbing since August 16. Interestingly, the coalition government had in July increased sales tax on petrol and diesel by 2% in an effort to mobilise resources to implement its big-ticket crop loan waiver scheme.

According to sources in the Commercial Taxes department, while the cut in sales tax on petrol and diesel will reduce resources generated from the fuels by around Rs 100 crore per month, it will be made up with an increase in basic price and also in consumption.

'Gift to Modi' Speaking to reporters in Kalaburagi, Chief Minister H D Kumaraswamy said the cut in fuel prices was a birthday gift to Narendra Modi. The prime minister turned 68 on September 17. “Though we did not get any gift from Modi (as flood relief and drought funds), we are giving him a birthday gift,” he said in a lighter vein.