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THE GOAN NETWORK
VASCO: Admitting the possibility of a slight increase in fuel prices in the near future, All Goa Petrol Pump Dealers Association President Paresh Joshi on Thursday dispelled fears of an immediate and sharp price rise and urged people to avoid panic buying and overstocking of fuel.
Speaking to reporters, Joshi said though petrol prices have been steady over the last few months, there could be a slight price rise following the oil attacks in Saudi Arabia.
"Fuel prices have been steady in the country for the last six months and for the last two months, prices have been fluctuating within the range of 5-10 paise. Following the Saudi oil attacks, there has been a cascading effect and fuel rates which were steady saw a sporadic jump."
"We don't have to worry about the situation in India because we have a forward trading contract with Saudi Arabia, wherein rates of the fuel are fixed for an entire contract period, no matter what the conditions are or any issues between the two countries,” said Joshi.
“Hence, we will get fuel at the old rates, but the central government takes stock of the situation and does a small cushioning for future import prices and as such, prices have been increasing by 10 paise, 20 paise per litre in the last few days.”
Joshi also said that fuel supplies were well-stocked in India and were still available at old rates. He was confident that the government would not allow fuel prices to rise and affect the end user.
"In times of economic slowdown, rising fuel prices is not a good thing because this has a cascading effects on other industries. There is no need for consumers to fear about sudden heavy rise in fuel rates and I don't feel that such a situation will arise soon. The simple idea is because petrol and diesel are not under GST but under the VAT system and the government can reduce VAT any day to regulate fuel price.”
Joshi said India imported 85% of its fuel from Saudi Arabia and other countries.
“Since other countries do not have issues and since India deals with forward trading with all these countries, there is no need to worry. There is no fear of an immediate and sharp price rise and hence, consumers should avoid panic buying and overstocking of fuel," added Joshi.
