Fuel price cut temporary, hike inevitable: Association

THE GOAN NETWORK | MAY 24, 2022, 12:13 AM IST


The All Goa Petrol Pump Dealers' Association (AGPPDA) has said the euphoria over a fuel price reduction would be temporary and there could be a price hike, given the price fluctuations in fuel prices.

AGPPDA President Paresh Joshi said there was an outcry once fuel prices crossed Rs 100 per litre of petrol and euphoria after prices dropped below Rs 100.

"However, people don't realise that a price reduction is not a permanent relief and while the government has reduced the prices temporarily, they have never assured that the price won't rise again.”

“If we see that till November, the price was Rs 107.19 and the price was later reduced to 95.81 on November 4, giving a relief of Rs 11.38. But the next day, oil companies began increasing their prices based on the international market and with increase of around 10 to 25 paise per day, petrol prices went back to Rs 105 on April 6.”

He stated that while there was a reduction by Rs 11 in November, fuel prices increased by Rs 10 in April.

“People did not realise this because price increases by a certain paise per day and this price was kept stable till May 21 in Goa and now, it has come down to around Rs 97.13, giving a relief of around Rs 8 per litre.”

“This cycle will continue and sometimes, these decisions are based politically because now we have Gujarat elections and this price could be stable for some time," said Joshi.

BENEFITS PEOPLE, HITS DEALERS: Joshi also said while people benefit from price reduction, petrol pumps are usually affected.

"Fluctuations of fuel prices will continue because the Russia-Ukraine war has also affected the international oil prices. The biggest impact on lower fuel prices is on petrol pump owners because we already have purchased fuel stock at a higher rate with all duties paid in advance and we are then forced to sell at the reduced price.”

“We have been asking the government to make provision for us pump owners in such a situation because we undergo losses as well," said Joshi.

Share this