Daijiworld Media Network - Kasargod (SP)

Kasargod, Nov 10: As there has been a wide gap in the prices of petrol and diesel in Karnataka and Kerala, vehicles users from Kerala border are opting to buy petroleum products from Karnataka petrol bunks. This has severely affected the business of the bunks and revenue of Kerala government.

Along with the cut announced by the central government in the excise tax on petrol and diesel, states and union territories where BJP is ruling had slashed the prices of the fuel. But the states run by the non-BJP governments including Kerala refused to bring down the taxes as they are afraid of suffering adverse impact on revenue.

People near the Kerala border are buying fuel from Karnataka petrol bunks and there has been a steep reduction in business for Kerala bunks. Many of the bunks are not being visited by customers.

In Kerala, Kerala government sales tax of Rs 22.76 is levied on diesel and Rs 30.08 on petrol. Additional tax of one rupee per litre is also collected by way of special cess. Kerala government gets revenue of not less than Rs 25 lac from bunks doing normal business. A few bunks in Kerala pay taxes in crores to the government. Now because of the difference in prices, business from Kerala is flowing into Karnataka. It is learnt that there has been a reduction of sales by about 75 percent in bunks close to Karnataka border.

For example, petrol price in Perla on Monday night stood at Rs 105.50 while diesel was sold for Rs 92.69 In Adyanadka which is nine km away, petrol was sold at Rs 100.11 per litre and diesel, Rs 84.56. Therefore, people find it better to cover the distance to reach Karnataka petrol bunks for refuelling their vehicles.