Motorists living near State border travel to Goa for fuel

Karwar: Petrol and diesel prices have been hiked in Karnataka, leading to a significant price disparity between the state and neighbouring Goa. With petrol in Goa costing Rs 9 less per litre compared to Karwar, many residents of Karwar are now opting to fill their tanks at petrol stations just across the border in Polem, Goa.

At present, a litre of petrol costs Rs 104.70 in Karwar, while the same amount is available for only Rs 94 in Goa. This Rs 9 difference has resulted in a noticeable shift in customer behaviour, with people flocking to the two petrol stations in Polem, just 15 kilometres from Karwar. Previously, the price difference was Rs 6 per litre, but a recent ₹3 hike in Karnataka has exacerbated the situation, making Goa even more attractive for fuel purchases.

Additionally, diesel is also cheaper in Goa, with a price difference of around Rs 5 per litre compared to Karnataka. This has led to those traveling to or residing near the Goa border opting to refuel their diesel vehicles in Goa. Five years ago, the price difference between Goa and Karnataka was even more pronounced, with petrol in Goa being about Rs 15 cheaper per litre.

This caused significant concern among petrol station operators in Karwar. However, a subsequent tax increase in Goa reduced the price gap to Rs 5-6 per litre, leading to a temporary decrease in the number of Karwar residents traveling to Goa for fuel.

The recent tax hike in Karnataka, which has increased the price gap to Rs 9 per litre, has reignited the trend of motorists heading to Goa for cheaper petrol. This situation has sparked considerable dissatisfaction among the residents of Karnataka, who are frustrated with the state government’s decision to raise fuel taxes.

In addition to being a preferred destination for cheaper petrol, Goa is also popular for its lower alcohol prices. Now, people visiting Goa for alcohol are also taking advantage of the cheaper fuel, filling their car tanks before returning to Karnataka.

The increase in fuel prices in Karnataka has not only affected individual consumers but has also had broader economic implications. Businesses that rely on transportation are facing higher operating costs, and the local petrol stations in Karwar are experiencing a decline in customers.

Residents are calling for the state government to reconsider the fuel tax hike to alleviate the financial burden on consumers and to prevent further economic fallout. The growing frustration is a clear indicator of the public’s dissatisfaction with the current fuel pricing policies in Karnataka.