The state government will reduce value added tax (VAT) on petrol to maintain the petrol price below Rs 60 per litre, since its selling price is Rs 62.73 per litre at present.

The BJP government had assured the people of the state that it will not allow the petrol price to exceed Rs 60 per litre.

Speaking to reporters on the sidelines of the Liberation Day function, chief minister Laxmikant Parsekar said, "We will reduce the petrol price. I will direct the department concerned to look into the matter."

Petrol price in the state crossed Rs 60 per litre, last week, after the oil marketing companies increased petrol price by Rs 2.21.

In June, the state government had reduced VAT on petrol by 2% to maintain the petrol price below Rs 60 per litre.

Parsekar, in his budget speech, had hiked VAT on petrol despite the BJP promising to lower fuel prices in their 2012 manifesto.

Petrol prices were hovering around Rs 51.10 in the state when Parsekar announced the increase in VAT to 22%.

Parsekar increased the VAT on motor spirit from 15% to 22%, which was reduced to 0.5% by then chief minister and present defence minister Manohar Parrikar in 2012.

While hiking the petrol price, Parsekar had promised to maintain the petrol price below Rs 60 per litre.