Goa Government on Wednesday brought down the Value Added Tax on petrol to 15% from 20% and it will now cost Rs 59.10 per litre in the state, a day after the Centre hiked the prices of petrol and diesel.

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In a notification issued here, Goa Commercial Taxes department announced reduction in VAT on petrol across the state from existing 20% to 15%. "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.

In the second such raise in fuel prices last month, the Centre on Tuesday hiked the petrol price by Rs 2.58 a litre and diesel by Rs 2.26 per litre.

After the price hike last night, the petrol was pegged at Rs 62 per litre across the state. After today's VAT reduction, petrol will now cost Rs.59.10 a litre in the state, it was officially stated. 

After assuming power in 2012, the BJP-led government had abolished the VAT on petrol, effectively bringing down the prices by Rs 11 per litre. 

However, the government subsequently rolled back the abolition and announced imposition of 22% VAT on petrol in Budget 2016-17 with a promise that the prices would not be allowed to cross Rs 60 a litre. In May this year, the government reduced the VAT by 2% bringing it to 20%.