"We had promised in our budget that we will not allow the petrol prices in Goa to exceed Rs 60 per litre," Chief Minister Laxmikant Parsekar told PTI.
"Since the increase in prices announced last night has taken it above Rs 60 per litre, we would reduce the VAT on it to bring it (price) down," he said.
"The exact quantum of reduction in taxes would be decided by state Commercial Taxes Department," Parsekar said. After the price hike last night, the petrol is costing Rs 62 per litre across the state.
The BJP-led state government, after assuming power in 2012, had abolished the value added tax (VAT) on petrol, bringing the price down by Rs 11 per litre.
The state government later rolled back the abolition and 22 per cent VAT was announced in state budget 2016-17 with a promise that the prices would be kept below Rs 60 per litre.
In May this year, the state government reduced the VAT by two per cent to control the price hike.