"I propose to reduce petrol price by Rs 11 per litre to save commuters from inflation," said the Chief Minister while presenting the budget.
The BJP in its election manifesto had promised to bring down petrol price at Rs 55 per litre during the Mar 3 assembly polls.
The Chief Minister also said that 0.1% value added tax (VAT) would be charged by the state government so as to keep a record.
The current petrol price is Rs 66 per litre and the proposed reduction will make it the cheapest in Goa, once the state budget is passed.
The reduction of petrol price will also prove to be major relief to the common man in the state.
Parrikar also said that VAT on aviation fuel would be brought down from 22% to 12% in a bid to lure aviation companies to refuel at the Goa airport.