Amid the ongoing protests against rising fuel prices, Andhra CM Chandrababu Naidu announced a Rs 2 cut in petrol, diesel prices, just a day after Rajasthan CM announced a Rs 2.5 cut per litre. According to details available on IOC app, one litre of petrol is now retailing at Rs 85.60 and diesel is retailing at Rs 79.22 in Hyderabad. The new rates of petrol and diesel will come into effect from tomorrow morning.
Notably, Andhra Pradesh chief minister N Chandrababu Naidu has announced a reduction in value-added tax (VAT), which is expected to cause the state’s exchequer Rs 1,120 crore. “During 2013-14, the crude oil prices were $105.52 per barrel. But when the price fell down to $46 dollars, too, the Centre did not reduce the petrol and diesel prices. Now, the crude oil costs $70 per barrel, but the Centre is increasing the petrol and diesel prices abnormally every day,” Naidu said.
Naidu, the chief of the Telugu Desam Party that was part of the ruling National Democratic Alliance till recently, made the announcement in the state assembly after holding a high-level meeting in the wake of the Bharat Bandh call given by the Congress and other opposition parties in the country. “This is becoming an unbearable burden on the common man,” he added.
Earlier yesterday, Rajasthan chief minister Vasundhara Raje announced a 4% point reduction in value added tax (VAT) on petrol and diesel, having the impact of reducing the petrol price in the state by Rs 2.5 per litre. The decision is expected cost the state Rs 2,000 crore.
Since mid-August, petrol price has risen by Rs 3.42 a litre in national capital Delhi even as domestic currency rupee hit record low against the US dollar, making imports costlier. Almost half of the retail selling price of the two fuels is made up of Central and state taxes. Notably, Andhra Pradesh has the third highest percentage of VAT on petrol at 35.77% after Maharashtra and Madhya Pradesh and the highest on diesel at 28.08%.