Bengaluru: The Chairperson of the Minister of Basavaraj Bommai faced the growth of calls to reduce sales tax on fuel after Tamil Nadu cut retribution at Rs 3 per liter.
The high price of gasoline and diesel in Karnataka hurt residents and various sectors, and in the Cascading effect, they have made more expensive commodities.
A number of people in the district near Tamil Nadu are now starting to travel to the country to take the tank, the trend is being described as a transfer of trade.
According to KM Basave Gowda, the President of Petroleum Akhila Karnataka, fuel outlets in districts such as Bengaluru Urban, Bengalore Rural, Mysore, Chamarajanagar and Mandya lose business in Tamil Nadu.
On Sundays, gasoline sells for Rs 105.2 per liter in Karnataka and for Rs 99.4 in Tamil Nadu.
“This (price difference) has also raised illegal activities, where people buy hundreds of liters of gasoline from Tamil Nadu beds and sell them in grocery stores and houses at prices that rs 3-4 to lower than pump prices in Karnataka.
Illegal trade This is expected to increase in the coming days, “Gowda said.
He added that the use of private vehicles has increased after a pandemic.
Domain experts say that this can cause loss of income for the Government of Karnataka and at the same time, inflation can inhibit the recovery of industry and business affected by covidinduced disorders.
“Hike in commodity prices because the increase in fuel costs has reached a small and medium industries badly.
Their lower productivity has produced a special supply of components for the large industry.
So, the entire chain of business activities has been disturbed by high fuel prices,” said Uma Reddy, Director of the Federation of Chamber of Commerce and Industry Karnataka.
A senior official in the Commercial Tax Department said that the situation needed the intervention of the Minister of Chief, who held a financial portfolio.
“The government must take its signals from Tamil Nadu and reduce gasoline and diesel sales taxes,” the official said.
Some travel transporters and travel agents have restriction operations because of high fuel costs, which have made businesses cannot be used.
As a result, diesel consumption has dropped by around 50 percent.
“The cost of truck fuel has increased from Rs 16 to Rs 28 per km, but customers are not ready to pay more.
So, around Rs 2.5 lakh trucks from a total of 6 lakh have been stopped,” said GR Shanmugappa, President Federation owner Lorry and Order agent association.
He added that the Federation would meet in Tumaku on August 18 and pressed the government to cut fuel taxes.
Radhakrishna Holla, President of the Karnataka state travel operator association, said that fuel vehicle fuel costs have risen from Rs 400 to Rs 1,000 per 800 km per day.
More than 75 percent of the 3.3 lakh vehicles stopped plying.