[Sowmya]

Look at the irony in Karnataka. While there was proposed price cut in Petrol price in GOA, here GOVT cut the price of Diesel by 50 Paisa :(

[ghodlur]

Thats a bold move by the Goa state govt in the face of the impending price hike by the Centre.

I hope this will surely ease the high cost of local travel which I recently experienced. Major part of my trip budget was spent on travelling and had to pay some horrendous pricing. Imagine paying Rs 400/- for a 11 km ride.

Just wondering if VAT adds to rs 11 in Goa, how much is being added in Mumbai/Thane?

[man_and_machine]

Originally Posted by Santoshbhat

A difference of Rs. 11 + in the cost of fuel between two neghbouring states is huge. THe huge difference will be looked as potential to make huge bucks by black marketeers. What if these guys load the petrol in tankers from Goa, bribe their way through state check posts and sell it to the neighbouring state vendor? Potential for a scam this.

Agree, +if they adulterate it and sell it to rikshaws (which is likely) then the impact on pollution is substantial. Visits to my cousin in Goa however is going to be more pleasant now!

[Gurudatta Nayak]

Petrol is cheaper by Rs 11 in Goa effective from April 02, 2012. Now, petol will cost Rs. 54.43 per liter and Rs. 43.35 for Diesel. The difference between both the fuel is Rs.11.08/- per liter.

[PhiGolden]

Originally Posted by Santoshbhat

A difference of Rs. 11 + in the cost of fuel between two neghbouring states is huge. THe huge difference will be looked as potential to make huge bucks by black marketeers. What if these guys load the petrol in tankers from Goa, bribe their way through state check posts and sell it to the neighbouring state vendor? Potential for a scam this.

I have a solution for this, let the neighboring states too reduce price. No scam, no pollution by adulterated and smuggled fuel and no arbitrage.

[misquitas]

Just heard the news as I reached my office. Excellent news and Goa has just shown the way to reduce petrol prices and there should be no excuse for the other states not to follow. Starting with Karnataka, where petrol prices are exorbitant.

[akshay380]

See how people are robbed elsewhere except Goa now.

States add to price of petrol with taxes - Times Of India

Tamil Nadu, for instance, charges a rather high 27% value added tax (VAT) on fuel.
The Tamil Nadu government has earned 15% more by way of taxes on fuel this year compared to last year, even though it lowered VAT to 27% from 30% after the decontrol of petroleum prices . Tamil Nadu's income on each litre of petrol sold is about 15.40 at current prices. With an average monthly petrol sales of 17 crore litres, the state earns close to 264 crore a month. That would amount to over 3,000 crore annually. Last year, TN earned about 13.40 per litre (at 30% VAT), when pump prices were 68 a litre. Since VAT is charged on the base price, each time the price of the essential commodity rises, the state earns a few more crores. Like Tamil Nadu, West Bengal also charges 27% VAT, while Odisha charges 19%. Andhra Pradesh charges a hefty 33% VAT on petrol, followed by Punjab and Karnataka, which charge 32.96% and 31.25% respectively , according to the Petroleum Planning and Analysis Cell. Uttar Pradesh charges 26.6% VAT.

[carwatcher]

Originally Posted by PhiGolden

I have a solution for this, let the neighboring states too reduce price. No scam, no pollution by adulterated and smuggled fuel and no arbitrage.

And then neighbouring state's other neighbouring states follow that so a chain reaction starts and spreads across whole India. I am sure it will be done in some time.

[Ford5]

Hope this news doesn't make the already thick skinned politicians in karnataka more impotent. Being the same political party they should apply the same logic.

[mempheS.D]

Sheesh! Just got back tanking up @78.90 from the Shell pump. Wish the impotents here could repeat the act here. I doubt it though while they are all busy grabbing the ministerial throne.

[wilful]

Mr.Parrikar & his team ought to be congratulated for this bold step. I guess this must be the single largest cut in fuel prices ever anywhere in India. One hopes that they have got their calculations right and can make up the revenue loss in ways that do not hurt the common man. And if they can- be assured that the other states will be under tremendous pressure.

[pganapathy]

One of the really good things with this price cut is that it is even less profitable to buy a diesel car in Goa. If only the rest of India follows suit you will not have this major subsidy on diesel and then the government needing to make up this money by raising taxes elsewhere. Here in Karnataka there is a difference of about 30 rs per litre between petrol and diesel, which makes owning a petrol car akin to commiting hara kiri.

It would actually make sense for the Goan government to raise taxes ever so slightly on tourist things (say hotel accommodation). If you raised the price of a room between 50 to say 500 rupees depending on the type of hotel, you will not really lose any tourists but will still make up a huge chunk of that missing VAT income.

Please god, show our karnataka politicians the light and let them reduce the petrol price

[deetjohn]

Originally Posted by Gurudatta Nayak

Petrol is cheaper by Rs 11 in Goa effective from April 02, 2012. Now, petol will cost Rs. 54.43 per liter and Rs. 43.35 for Diesel. The difference between both the fuel is Rs.11.08/- per liter.

Wow! That's unbelievable for a liter of Petrol. I am very J.

Nicely done by Mr. Manohar Parrikar.

I guess Honda will be opening multiple showrooms in Goa.

[sasi405]

This is the correct way to even out the price disparity between diesel and petrol. Diesel is subsidised anyway; so the VAT on it should stay, leading to revenue for the states. With petrol, which has fewer users, the loss of VAT would not be so much as to not be recoverable from other sources, while at the same time being a friendly gesture to the common man who can only afford a petrol car / bike. Hope other state governments follow suit and show a thumbs down to the central government.

[rambo1o1]

This is good news !!! Now i can bunk class and enjoy my petrol figo to the fullest!!

I guess now the discounts and freebies on petrol cars will reduce!! Price of 2nd hand petrol cars wont suck now!, good for the seller bad for the buyer!!

Originally Posted by deetjohn

Wow! That's unbelievable for a liter of Petrol. I am very J.

Nicely done by Mr. Manohar Parrikar.

I guess Honda will be opening multiple showrooms in Goa.

^^
Honda just opened a new dealership about a month back!! Hopefully the showrooms will see more customers!