Reports reveal that various petrol outlets are seeing a two-fold increase in sales in the last two days.
According to the Goa government, the state recorded an average sale of petrol worth Rs 2.3 crore earlier before the new rates were implemented, adding that the sales have touched Rs 3.5 crore a day.
"After the recent announcement, VAT of Rs 1 crore, as against earlier projection of Rs 210 crore, will be collected," said a senior official.
The Chief Minister had said that the amount collected from the VAT would be put to use to keep an eye on state's borders, so that the commodities are not smuggled outside the state.
Petrol prices were slashed down after the Chief Minister of the state, Manohar Parrikar while presenting the budget in March, proposed to reduce VAT (value-added tax) on petrol from 20 per cent to 0.1 per cent.