Karwar, Karnataka - June 21, 2024 - Residents of Karwar are making the short trip across the state line to take advantage of Goa's lower petrol and diesel prices. This comes after a recent hike in fuel taxes by the Karnataka state government, pushing petrol prices over Rs 100 per liter.

The price difference is significant. In Karwar, petrol costs Rs 104.70 per liter, while in neighboring Goa, it's Rs 95.73. Diesel follows a similar trend, with Karwar at Rs 90.57 and Goa offering Rs 88.26 per liter. This disparity is leading to long lines at petrol stations on the Goa side of the border, as Karnataka residents fill their vehicles and even extra cans with cheaper fuel.

This trend is causing concern for petrol stations in Karwar, which are experiencing a drop in business. Some petrol pump owners are worried they may run out of stock, especially with the increased demand.

The situation is not new for Karwar. Residents have previously been known to smuggle Goa's cheaper liquor across the border. Now, with the significant price difference in fuel, petrol and diesel are being added to the list of smuggled goods.

The Karnataka government's tax hike is the culprit behind the price disparity. Goa has not raised taxes on petrol and diesel recently, making it a more attractive option for motorists in Karwar.

This situation highlights the impact of fuel tax variations between neighboring states. As prices rise in Karnataka, residents are forced to seek alternatives, impacting local businesses and potentially leading to smuggling.