Panaji: Following the petrol price hike by oil companies Monday night, the state government on Tuesday reduced the value added tax (VAT) on petrol by two per cent, maintaining its electoral promise wherein the government had assured to maintain the price of the petrol below Rs 60/litre.
Last night, oil companies had increased the petrol price by around 90 paise. With the hike, the price, which stood at 58.85 per litre, went up to Rs 60.70 per litre.
Chief minister Laxmikant Parsekar, in his recent budget speech has hiked the VAT on petrol despite the BJP promising to lower fuel prices in their 2012 manifesto. Petrol prices were hovering around 51.10 in the state when Parsekar announced to increase the VAT to 22%.
Parsekar increased the VAT on motor spirit from 15 %to 22 % which was reduced to 0.5 percent by his predecessor, defence minister Manohar Parrikar in 2012.