Karwar, Karnataka – June 21, 2024 – Residents of Karwar are crossing the state line to take advantage of significantly lower petrol and diesel prices in Goa. Following a recent fuel tax hike by the Karnataka state government, petrol prices in Karwar have soared over Rs 100 per liter, with petrol costing Rs 104.70 and diesel Rs 90.57 per liter. In contrast, Goa’s prices are much lower, with petrol at Rs 95.73 and diesel at Rs 88.26 per liter.
This price disparity has led to long queues at Goa’s petrol stations, as Karwar residents fill their vehicles and extra cans with cheaper fuel. The trend is causing concern among Karwar’s petrol station owners, who are experiencing a drop in business and fear running out of stock due to the increased demand.
The situation is reminiscent of previous instances where Karwar residents smuggled cheaper liquor from Goa. Now, with the notable difference in fuel prices, petrol and diesel are becoming the new smuggled commodities.
The recent tax hike by the Karnataka government is the primary cause of this price gap. Goa’s stable fuel taxes make it an attractive option for Karwar motorists. This scenario underscores the significant impact of fuel tax variations between neighboring states, compelling residents to seek more affordable alternatives and affecting local businesses.
