In a massive relief for fishing community, the state government on Saturday said a steep ₹22.43 per litre diesel price hike has been rolled back, following intervention from the Centre.
The hike, imposed recently by Bharat Petroleum Corporation Limited (BPCL), had affected more than 3 lakh fishermen operating around 35,700 registered fishing boats, including 27,000 mechanized and 8,700 non-mechanized vessels.
In a statement on Saturday, Gujarat government said the prices hiked by BPCL has been withdrawn after a formal representation was made by state fisheries minister Jitu Vaghani to the Central government.
According to the state government, the Gujarat Fisheries Central Cooperative Association Ltd (GFCCA), the apex body of fishermen cooperatives in the state, had floated a tender and entered into an agreement with BPCL to supply diesel at discounted rates.
Despite this, the petroleum company went ahead with the price increase, prompting objections from local MLAs and fishermen associations.
“The state government sought intervention from the Central government to provide a special exception for the fishing industry, similar to concessions given to Gujarat State Road Transport Corporation,” the official statement added.
Authorities requested that fishermen be classified under the ‘retail segment’ instead of the standard consumer segment, ensuring they received the benefits of subsidized diesel.
Gujarat ranks second in India in marine fish production, with total fish production (marine + inland) estimated at over 9 lakh tonnes per annum.
“ This classification has led to a substantial increase in operational costs, particularly in fuel expenses, which constitute a major share of fishing activities,” stated Vaghani in his letter to Hardeep Singfh Puri, Union minister of Petroleum and Natural Gas dated March 21.
“The fisheries sector is highly sensitive to input costs, and such a steep rise in diesel prices adversely impacts the economic viability of fishing operations. It not only affects the income of fishermen but also has downstream implications on fish prices, export competitiveness, and overall sectoral growth,” he added.