Team Herald
PANJIM: Rising international oil and gas prices have hit consumers hard as fuel prices scaled upwards in Goa and other parts of the country on Monday.
Since last year, oil companies are revising petrol and diesel prices daily after the new dynamic system of fuel prices was introduced. Earlier, the price of petrol and diesel changed fortnightly. With the daily revision, the price of diesel has gone up by Rs 4.84 per litre over the past three months, while petrol has become costlier by Rs 5.34.
On Monday, petrol prices in the State stood at Rs 68.01 per litre, which is the cheapest as compared to metros like Mumbai, where it is Rs 81.69, or New Delhi where it sells for Rs 73.83, Bangalore for Rs 75, Hyderabad for Rs 78.19, Chennai Rs 76.59 and Kolkata Rs 76.54.
Similarly, diesel prices in Goa on Monday stood at Rs 65.80 per litre as compared to metro cities Mumbai-Rs 68.69, New-Delhi-Rs 64.69, Bangalore- Rs 70.28, Hyderabad- Rs 78.19, Chennai-Rs 68.24 and Kolkata- Rs 67.38.
“We are fortunate that the local VAT is Goa is much less as compared to other cities and metros. The petrol VAT in Goa is 17 per cent while for diesel it is 19 per cent as compared to Mumbai which has some cess charges on top of VAT. Now fuel rates change on daily basis unlike previous years where it would change fortnightly. It is almost impossible to control the prices as it is based on global rates,” All Goa Petrol Dealers Association president Paresh Joshi said.
The cost of petrol in Goa is the lowest in the country after the BJP-led government of Manohar Parrikar in 2012 had slashed VAT to 0.1 per cent as part of a promise made in the party’s election manifesto. The decision resulted in petrol prices dropping by Rs 11.
Later, the government had hiked VAT in a staggered manner to help the State recover revenue. Then CM Laxmikant Parsekar had increased VAT on petrol but after prices crossed Rs 60, he had reduced VAT by 2 per cent.
However, in the March 2017 budget, Parrikar reversed this decision and hiked the VAT on petrol to15 per cent, where it currently stands.
Worldwide, crude oil prices hold the key to fuel rates. Crude oil prices had plummeted in the period mid-2014 to mid-2016. But, since July 1 last year, global crude oil prices shot up by 47 per cent, which resulted in fuel prices soaring.
Meanwhile, the ministry earlier this year sought a reduction in excise duty on petrol and diesel to mitigate the impact of rising international oil rates, but the Finance Minister in his budget ignored the calls. India has the highest retail prices of petrol and diesel among South Asian nations as taxes account for half of the pump rates.
