Petrol prices in Goa plunge

The slashing of rates by Rs 11 was a promise given by the Bharatiya Janata Party government in its election manifesto.

Last Updated: Apr 02, 2012, 13:19 PM IST

Panaji: Petrol prices in Goa have dropped down to Rs 54.96 since Monday, the cheapest in the country, an official said.

Long queues were witnessed at most petrol pumps with bikers and car owners opting to tank up, instead of regulating their fill of fuel.

"They are saying that the prices of petrol are again going to be increased by the central government," said Narayan Gaonkar, who was queued up at a Bhartiya Petroleum petrol pump in Porvorim.

The slashing of rates by Rs 11 was a promise given by the Bharatiya Janata Party (BJP) government in its election manifesto.

Petrol, which used to cost approximately Rs 66 (Rs 65.86) in Goa, costs only Rs 55 (rounded price) from now.

The administration has virtually abolished the value added tax (VAT) component on petrol, reducing it down to 0.1 percent.

"We needed the VAT budgetary head to keep vigil on petrol pumps so that no petrol is smuggled out of state. The 0.1 per cent VAT will be used for expenses incurred on keeping vigil on border petrol pumps," Parrikar said.

IANS