Panaji: Goa Chief Minister Laxmikant Parsekar today refused to reduce the value added tax (VAT) on petrol. “We will not reduce the VAT on petrol prices. There is no demand from people to reduce it. If VAT is reduced, petrol will cost lesser than diesel which is not a good situation,” Parsekar told reporters on the sidelines of an IT convention. The BJP-led government had abolished VAT on petrol when it came to power in 2012 reducing the prices by Rs 11. Later, the then Chief Minister Manohar Parrikar had imposed a VAT of 3.5 per cent on it which was later increased twice by Parsekar to 15 per cent. Parsekar had said VAT would be reduced if petrol prices cross Rs 60 per litre mark. The hike in petroleum prices last week had raised the petrol prices to Rs 63.50 per litre in the state. Parsekar ruled out review of VAT on petrol products and said the increase in taxations was to compensate the losses due to mining closure. The mining industry in the state has been closed since last more than two years.