Home Economy Goa to lose Rs.165 crore over low petrol prices

Goa to lose Rs.165 crore over low petrol prices

By IANS,

Panaji : Goa, where petrol prices are the lowest in the country, has earned the distinction at some cost to the government – about Rs.165 crore, which is big for the small state.

According to Chief Minister Manohar Parrikar, the exchequer lost Rs.30.68 crore in two months after the newly elected Bharatiya Janata Party-led coalition ministry virtually abolished value added tax (VAT) on the fuel, reducing it to 0.1 per cent.

“The average estimated loss for 2012-13 would be about Rs.165 crore per annum approximately,” Parrikar, also the state’s finance minister, told the Goa legislative assembly’s monsoon session in a written reply Monday.

According to the reply, Goa lost Rs.15.70 crore in revenue in April, while in May it lost Rs.14.98 crore.

Petrol in Goa is sold at Rs.61.19 per litre as compared to Rs.81.75 in Karnataka and Rs.78.57 in Maharashtra.

Petrol in Goa is the cheapest in the country.