BHUBANESWAR: Amid the seemingly unending fuel price surge, Odisha set a national record of sorts as diesel soared above petrol prices for the first time in the country. The unprecedented development has fuelled fears of increase in prices of essential commodities that could impact the daily life of common citizens in the State.
On Sunday, diesel was sold in the range of Rs 80.69 to Rs 80.78 against Rs 80.57 to Rs 80.65 for petrol at different filling stations in the Capital city. Diesel had overtaken petrol since Saturday when it went as high as Rs 80.88- Rs 80.97 while petrol prices ranged between Rs 80.82 and Rs 80.90 in the city.
Sources attributed the trend to high value added tax (VAT) on diesel in Odisha as compared to other states. In majority of the states, VAT levy on petrol was higher than diesel but Odisha has imposed a uniform 26 per cent VAT on both petrol and diesel. This compounded with increase in basic price of diesel by oil companies has led to the situation.
“Excise on diesel is lower by Rs 4 in comparison to excise on petrol. Besides, the dealers margin is also lower by Rs 1.10 on diesel. However, in the last six to eight months, oil companies have increased the basic price on diesel by Rs 5 which is one of the reasons for the unprecedented surge,” Utkal Petroleum Dealers’ Association general secretary Sanjay Lath said.
Meanwhile, even as the stand-off between the Centre and State Government over reduction of excise and VAT on petrol and diesel has further abetted the steep escalation in fuel prices, diesel has become a big cause of worry for the people. The hike will impact transportation costs and thus affect each and every aspect of the life of the people.
“Odisha is basically an importing state, dependent on flow of most of the essential commodities from outside. From food grains to edible oil, salt to sugar, vegetables to fruits, meat, fish and eggs, the State is heavily reliant on imports from other states. Higher transportation cost will inevitably be transferred to commodity prices.
Besides, farmers of the State will be affected as they use diesel as their primary fuel for major purposes from powering tractors, tillers and other implements to irrigation,” Odisha Byabasahi Mahasangha general secretary Sudhakar Panda said.
It will also lead to hike in public transport fares affecting the multitude of travelling people and commuters across the State. “Under the existing automatic fare fixation system, bus fares are going to be increased on account of diesel price hike,” All Odisha Private Bus Owners’ Association spokesperson Debashis Nayak said.
Cuttack-Bhubaneswar Mini Truck Malika Mahasangha president Ganesh Mahari also said with the increase in diesel prices, local transportation of goods and commodities will be impacted, thereby increasing costs for the people from all walks of life.