After the Centre reduced excise duty on fuel on Wednesday, the Goa government announced a further reduction of Rs 7 per litre on Value Added Tax (VAT) on both petrol and diesel. The Centre reduced the excise duty on petrol by Rs 5 and that on diesel by Rs 10, to be effective from Thursday.
Chief Minister Pramod Sawant announced the state government’s decision on Twitter. “The Modi Govt. has given a great Diwali gift to all Indians by announcing a reduction in Excise Duty on Petrol and Diesel… In addition, Government of Goa shall reduce an additional Rs 7 on petrol and Rs 7 on Diesel, thereby reducing the price of diesel by Rs 17 per litre and petrol by Rs 12 per litre.”
In Goa, where the fuel prices had gone beyond Rs 100-a-litre, saw a sharp fall in the prices after the government's decision on Wednesday. In Panjim, petrol can be brought at Rs 96.37 a litre, a fall of price by Rs 11 while diesel costs Rs 87.26 a litre.
This is the highest-ever reduction in excise duty and rolls back a part of the Rs 13 and Rs 16 per litre increase in taxes on petrol and diesel effected between March 2020 and May 2020 to avoid passing on to consumers the sharp fall in international oil prices.
That hike in excise duty had taken central taxes on petrol to their highest level of Rs 32.9 per litre and that on diesel to Rs 31.8 a litre.
The relentless increase in fuel prices had been severely criticised by the opposition parties.
On Wednesday, the Congress party protested against the rise in the prices of fuel and essential commodities by burning the effigy of ‘Mhargaisur’ in Mapusa. The Congress leaders marched on the road protesting against the BJP government.