Petrol, diesel prices to increase in Goa from tomorrow. Here is why
- Earlier, Karnataka government had hiked local Value Added Tax (VAT) on petrol and diesel resulting in price hike of both fuel.
Goa has become the second state to increase Value Added Tax (VAT) on petrol and diesel prices this month. The state government has announced that the VAT will be increased to 21.5 per cent on petrol while diesel will attract VAT of 17.5 per cent. The increase in VAT translates into ₹1 hike per litre on petrol and 35 paise per litre on diesel. Earlier this month, the Karnataka state government also announced similar measures increasing the price of petrol and diesel.
The latest fuel price hike will come into effect from midnight, effectively impacting the price from Saturday (June 22). According to the latest hike, the price of a litre of petrol will now cost ₹96.61. The price of diesel will increase to ₹88.42 per litre.
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On June 15, the Karnataka state government had also increased local VAT on petrol and diesel prices. This resulted in a ₹3 per litre hike in petrol and diesel prices. The cost of petrol in Bengaluru now stands at ₹102.84 per litre while diesel price now stands at ₹88.95 per litre.
The price of petrol and diesel has largely remained static across the country after the last price revision that took place in March this year. The price of petrol and diesel were reduced by up to ₹2 per litre ahead of the Lok Sabha Elections that took place from April.
Also Read : Why petrol and diesel cost about ₹100 a litre on average in India?.)
Petrol and diesel prices across India now hover around ₹100 per litre on average, which are all-time high. Despite the pricing of both petrol and diesel being in the periphery of ₹100 a litre, the costs of both fossil fuels vary in different states. These differences in petrol and diesel prices come due to the different range of variable tax components that are applied on these motor fuels. However, the cost level for these fossil fuels is pretty high.
Why state governments have separate VAT on fuel
Different state governments across India levy the VAT or sales tax. The VAT rate is determined after accounting for a few additional elements such as excise duty, which is levied by the central government along with the dealer's fee. The variable rates of the VAT by different state governments contribute to variable retail prices of petrol and diesel in different states and cities across the country.
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