Goa government cuts down price of petrol by Rs. 11

The Chief Minister of Goa Manohar Parrikar has suggested a reduction of 11 percent in VAT for petrol in the state of Goa and has become a hero for the common man. April 2, 2012 will be the day when Goa becomes the state with cheapest petrol in the country along with being the state with cheapest liquor in the whole of India. The petrol price in Goa currently is Rs. 65.61 and with 11 percent deduction in VAT it will be costing Rs. 55 from 2nd April 2012. At present the petrol in the national capital, New Delhi costs Rs. 65.64 per liter. The fuel retailers that are run by the state sell petrol at Rs. 38.42 per liter after paying for refining and transporting.

Other miscellaneous costs and margin for loss from evaporation are also included in this amount. The central government then imposes an excise duty of Rs. 14.35 per liter which in turn is taxed at 3 percent for education tax per liter. After this the government of Delhi charges 20 percent VAT at Rs. 10.94 percent per liter of petrol. An additional VAT of Rs. 1.49 per liter is billed by the government as the dealer allowance. In the end, the central and the state government absorbs around Rs. 25.72 per liter of petrol sold in New Delhi. Petrol is the commodity that is used by the masses of the country and the amount of tax imposed on this commodity is way too much.

The petrol bills for the people of the country have been on an up rise since a long time now and lower petrol costs have become like a fantastic but a vain hope for them. The recent step taken by the Goa government has kindled a new hope in the hearts of the people and the media who are now rooting for the same type of reduction in the rest of the country. If the central and state government go ahead with reduction of 11 percent in VAT like that in Goa, the petrol prices across the country could come down to as low as Rs. 54.7 per liter.