Traders say consumers will have to pay Rs 1.32 more per litre
Inflation expected to climb to 11 per cent
TEAM HERALD
teamherald@herald-goa.com
PANJIM: Goa last night earned the enviable distinction of being the only state in the country where the price of diesel has now shot ahead of petrol. This distinction was accorded to it for the second time in consecutive years following the hike of Rs 1.09 effected by the Centre, exclusive State taxes.
The price of diesel has been increasing by 50 paisa every month, but last month due to the elections a hike was not effected. Last night, following the hike of over a rupee diesel became more expensive than petrol. This decision did not go down well with the trade fraternity.
Paresh Joshi, President, All Goa Petrol Pumps Association said “This will mean the consumer will have to pay approximately Rs 1.32 more per litre. Of course there will be small variations in price depending on the locations in Goa”.
The diesel price hike has been effected following a cut in subsidy.
Last year for the record, the price of petrol had dropped when the rupee had strengthened. Joshi said this hike could be explained by the fact that there is no VAT on petroleum. If it existed it would have made petroleum more expensive than diesel by approximately Rs 12. Petrol in India is subsidized, he said and this could be seen in the cost of LPG cylinders supplied to residences. The first 12 gas cylinders in Goa are provided to consumers at a cost of Rs 450 but for more than that, one would have to pay approximately Rs 1,000 which would give the consumer an idea of the subsidy at play, he said. This move by the government he said may be an attempt to generate revenue at the fag end of its rule. It would not be surprising he said if this hike was reversed in the days to come when the new government comes to power. This, he said would be important given that this hike could give rise to inflation. Inflation in Goa touched 8% in March 2014 and is expected to climb to 11% with this hike, and this would not be pleasant for any government. Asked what could be done, Joshi said it all depends on what the CM of the State wanted to do. “It all depends on political will, he has shortfall of Rs 150 crore which had to be handled and the money he will get from this hike will help him with some more money in the kitty. Like I said it is in his hands”.
Time perhaps will tell.
