Cut in petro prices nationally cushions Goa fuel hike

Reduction in the oil prices has come as a major relief for the State of Goa which was staring at a whopping jump in the petrol prices from tomorrow due to imposition of increased Value Added Tax (VAT).

While the Goa government in the notification increased VAT from 7 per cent to 15 per cent on petrol injecting rise of Rs 5 per litre, in a late night development, the oil prices nationally are reduced cushioning the impact in Goa.

The prices of petrol were slashed by Rs 3.71 per litre and diesel by Rs 2.90 per litre, the rates which would be applicable from midnight.
 

"Due to reduction of prices nationally, the actual impact on the rate of petrol per litre has been only Rs 1.50 per litre," Paresh Joshi, President, All Goa Petrol Pump Dealers' Association told PTI.

The prices of petrol in Goa which are around Rs 60 per litre will now touch a mark of Rs 61.50 per litre.

Chief Minister Manohar Parrikar announcing hike in the VAT in the Budget had assured that the petrol prices would be kept below Rs 65 per litre despite increase in the VAT.

"There are a total 110 petrol pumps which are managed by three major oil companies where the price rise would be implemented," Joshi said.

BJP led government after assuming power in the year 2012 had reduced VAT on petrol decreasing the petrol prices by almost Rs 11 per litre.

Parrikar had earned praises for his move but later the State government gradually increased VAT but the prices were controlled within Rs 60 per litre till date.

In the recently tabled budget, the Chief Minister had said "My government since last five years has been able to maintain the promise given to the people of the state in 2012, and has ensured that the prices of Motor Spirit (petrol) did not cross the threshold level of Rs 60 per litre."

"The prices of petrol in Goa are significantly lower compared to the neighbouring states of Karnataka and Maharashtra, where this fuel is sold at Rs 72 and Rs 76 respectively," he had said.