PANJIM: India’s oil marketing companies late Friday evening cut petrol price by Rs 3.77 per litre and diesel by Rs 2.91 per litre following fluctuations in crude prices. However, in Goa, due to the 15 percent increase in Value Added Tax (VAT), petrol will be priced at Rs 61.37 to Rs 62 per litre effective from April 1 from the existing Rs 60.37 per litre.
Speaking to Herald, All Goa Petrol Pump Owners Association President Paresh Joshi said, “Oil companies have reduced petrol and diesel by, so in Goa even after the VAT increase to 15 percent, petrol prices will just increase by Rs 1 to Rs 1.25 with effect from midnight.”
Diesel will be cheaper by Rs 2.91 as VAT was only increased on petrol and not diesel. If not for the cut in petrol prices, the fuel would have gone up by Rs 5 a litre due to 15 percent VAT increase.
Sources said that this revision comes after almost a month. The companies normally review petrol and diesel prices every fortnight, but in March it has been done just once. “International prices remaining flat could be one of the reasons for prices not changing in the second fortnight of March,” they said.
Chief Minister Manohar Parrikar in his budget speech had increased VAT on petrol from 12 percent to 15 percent.
In April 2012, after coming to power, BJP had reduced VAT on petrol from 20 percent to 0.1 percent as a respite to the common man in view of the constantly rising petrol price.
Parrikar, in his budget speech had said that his government had maintained its promise made to the people in 2012 all through it term, ensuring that the price of petrol, did not cross Rs 60 per litre.
“The prices of petrol in Goa are significantly lower compared to the neighbouring states. The new government felt the need to have a relook in this and has proposed to enhance the rate of VAT on motor spirit to 15%. Even with this increase the price of petrol will be in the range of Rs 65 per litre,” Parrikar had said in his budget speech.
