On Thursday, The Telangana government replaced the fixed Value Added Tax of Rs 2 on petrol and diesel with the percentage system. However, the market price of fuel not changed but VAT has hiked a lot. The petrol per litre increased from 31 per cent to 35.2 percent and diesel from 20.5 per cent to 27 per cent per litre.
“The change in conversion of fixed system of per cent will allow the consumers to get fuel at a lower price on a reduction and at a higher price on a rise by the oil companies,” said Mr Anil Kumar, commissioner, Telangana Commercial Tax department.
Mr Rajiv Amaram, joint secretary of the Confederation of Indian Petroleum Dealers said “The present price for a litre of petrol is Rs 63.81 and Rs52.13 for diesel per litre.” He added, “The fuel price in Telangana is second highest in the country after Mumbai. This has resulted in almost a 80 per cent fall in sales at the border of the state with many consumers filling up in other states of Kerala, Karnataka, Tamil Nadu and Maharashtra where the fuel price is cheaper.”