Hyderabad: The Telangana government on Thursday replaced the fixed Value Added Tax of Rs 2 on petrol and diesel with the percentage system. However, this move of the government will not change the present market price of fuel. The VAT on a litre of petrol has been increased to 35.2 per cent from 31 per cent and from 20.5 per cent to 27 per cent on a litre of diesel.
Mr Anil Kumar, commissioner, Telangana Commercial Tax department said, “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.”
“The present price for a litre of petrol is Rs 63.81 and Rs52.13 for diesel per litre,” said Mr Rajiv Amaram, joint secretary of the Confederation of Indian Petroleum Dealers. 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.”
