Our WhatsApp number cannot be used for calls. This is a chat only number.
After the Central Government announced reduction of excise duty on petrol by ₹5 per litre, the State Government of Goa lowered VAT rates on petrol. To know more about petrol tax in Goa, keep reading!
The Chief Minister of Goa Pramod Sawant declared to reduce VAT on petrol by ₹7 per litre after the announcement of the Central Government to lower excise duty on petrol. This was done to relieve Indian citizens from rising fuel costs.
After the reduction of VAT and excise duty on petrol, dealers in Goa had incurred a cumulative loss of approximately ₹6 crores.
Here is this table mentioned below that summarises components that constitute the petrol price in Goa:
|
Elements |
Effective as 21st October 2022 (in ₹ per litre) |
|
Price charged to dealers |
₹57.35 per litre |
|
Excise duty (levied by the Central Government) |
₹ 19.90 per litre |
|
Average dealer commission |
₹5.58 per litre |
|
VAT (levied by the State Government) |
₹14.92 per litre {18.21% of (fuel price charged to dealers + excise duty + avg. dealer commission)} (an additional 0.5% green cess is applicable on VAT) |
|
Retail selling price of petrol at Goa |
₹97.75 per litre |
The Central Government imposes excise duty (₹19.90 per litre) on petrol and the State Government of Goa levies VAT (₹14.92 per litre) on petrol in Goa. Thus, tax rates charged by both Central and Goa Governments influences petrol price in Goa, apart from other factors such as dealers' commission, price of crude oil etc.
Factors that affect the petrol tax in Goa are as follows:
Demand and supply of crude oil, oil reserves and supplies, international political relations determine the price of crude oil. Change in its price affects petrol prices across India.
Oil Marketing Companies give a commission to petrol pump owners. This commission affects the petrol price in Goa and across India.
Oil Marketing Companies charge a price to dealers to distribute crude oil. This price plays a determining factor in the petrol price of Goa and India.
Respective state governments impose VAT on petrol after considering excise duty, dealer's commission charged etc. On the other hand, the Central Government levies excise duty on petrol. Both these tax rates influence the petrol price in Goa.
Crude oil is purchased from the international market in dollars. Hence, the exchange rate of Indian rupees and dollars influences the petrol price in the domestic market. For example, if the valuation of the American dollar increases, it will raise the purchasing price of crude oil and, subsequently, the petrol price.
If the supply of petrol falls short and fails to meet its increasing demand, the price of petrol rises as per the law of economics.
Yes, the Goa Government levies a uniform VAT rate across the state. Hence, every city resident will pay a similar tax rate on petrol. However, there is a slight variation in petrol prices in North and South Goa.
The reduced excise duty and the VAT on petrol lowered Goa's petrol price by ₹12 per litre, thus providing relief to state residents. However, petrol tax in Goa and cost may vary later, so keep an eye on current updates.
Please try one more time!
Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
Continue with {{bikeCtrl.lastVisitedData.lastVisitedUrl.indexOf('DigitPaymentGateway/payments')
!== -1 ? 'payment completion': 'previous choice'}}
