RBI's monetary policy strategy meeting on Tuesday
Sharma mum on Left, SP opposition to retail FDI

Economy Jul 23, 2012

Rs 165 crore is what Goa will lose for low petrol prices

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 percent.

Reuters

"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.

IANS

Related Stories.