Fuel prices continue to soar across Odisha, with rates being hiked three times in the last 10 days amid rising global crude oil prices triggered by the ongoing conflict in the Middle East. The repeated increase has pushed petrol and diesel prices up by more than Rs 5 per litre during the period, putting additional pressure on consumers already battling inflation.

Oil marketing companies have attributed the steep hike to the surge in international crude oil prices, stating that they are incurring heavy losses despite the recent revisions. According to sources in the petroleum sector, companies are currently suffering a loss of around Rs 30 per litre on petrol and nearly Rs 80 per litre on diesel.

With fuel prices expected to rise further in the coming days, demands are mounting on the Odisha government to reduce Value Added Tax (VAT) on petrol and diesel to provide relief to consumers. At present, the state government levies 28 per cent VAT on petrol and 24 per cent on diesel.

Opposition parties and consumers have urged the state government to intervene immediately, arguing that the continuous rise in fuel prices is directly affecting transportation costs and the prices of essential commodities. The rising fuel burden is also expected to have a cascading impact on daily household expenses and the overall economy.

“Petrol and diesel attract 28 per cent and 24 per cent VAT respectively. If is VAT is slashed by 5 per cent, the fuel price will be reduced by Rs 4 per litre. But, it will reduce government’s revenue,” said Raj Narayan Tripathi, economist.

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“If government reduces the VAT, the fuel price will definitely go down,” said a filling station manager.

A consumer said, “We request the Odisha government to reduce the VAT as the skyrocketing petrol price is burning holes in our pockets.”

Amid growing public concern, all eyes are now on whether the state government will consider a reduction in VAT to ease the financial strain on consumers.