If the petrol price keeps on increasing, the Goa government is open to reversing the hike in VAT on petrol, chief minister Laxmikant Parsekar said on Friday.

On January 1, the Goa government raised the VAT on petrol in Goa from 3.5% to 10%, thus raising the price of petrol in Goa by 3.2 per litre.

Speaking to the media on the sidelines of a cabinet briefing, Parsekar said that the Manohar Parrikar government had slashed VAT on petrol (April 2012) at a time when petrol prices were soaring. The VAT was then reduced to 0.1% from 20% but in August 2014, Parrikar raised the VAT to 3.5%.

Parsekar said, "Even though we have raised the VAT again, to 10%, our petrol price is still less compared to many other states in India. We have not even raised it to match petrol prices in other states. With this rise in VAT, the government will earn about 5 crore to 6 crore per month."

The chief minister said that if petrol prices keep on rising, the government will consider reducing the VAT on petrol once again. "Our government will always protect the interests of Goans and will take decisions accordingly. Even now, the people have taken the rise in petrol price with magnanimity. They are not complaining," Parsekar said.

Parsekar said that the Manohar Parrikar government had slashed VAT on petrol (April 2012) at a time when petrol prices were soaring. The VAT was then reduced to 0.1% from 20% but in August 2014, Parrikar raised the VAT to 3.5%