Petrol rates lowest in state: Parrikar

Panaji: Despite the Centre asking states to reduce the VAT on petrol and diesel by 5%, chief minister Manohar Parrikar ruled out such a move saying, "Goa already has the lowest fuel prices in the country."

The VAT on petrol stands at 15%, while the tax on diesel stands at 19% and prices of petrol and diesel are Rs 63.84 per litre and Rs 57.83 per litre respectively.

"We have among the lowest prices of diesel and petrol in the country. The other states have been charging much higher VAT and the fuel prices are very high compared to Goa. We are already providing relief to the people," Parrikar told TOI.

The Goa government had kept petrol prices below Rs 60 per litre during the last five years by reducing the VAT to 0.1%. In 2012, Parrikar had promised to grant relief from inflation to citizens by reducing the tax on the essential fuel.

His successor, Laxmikant Parsekar had taken the step to hike the VAT rate in a staggered manner to help the state recover revenues. Parsekar had increased the VAT on petrol but after petrol prices crossed Rs 60, Parsekar had reduced the VAT by 2%.

However, in the March 2017 budget, Parrikar reversed this decision and hiked the VAT on petrol to 15%, where it currently stands.

In comparison, Petrol in Kolhapur costs Rs 77.84 per litre and diesel costs Rs 59.87 per litre.

On Goa's eastern border, petrol and diesel costs Rs 69.44 and Rs 56.97 per litre, respectively.