Hyderabad: The Andhra Pradesh government is expected to issue a notification, reducing the prices of petrol and diesel by Rs 2 per litre. The decision means that the government will lose about Rs 80 crore per year through VAT on petrol and diesel.
A few months ago, the government had increased petrol and diesel price by Rs 4 per litre. This resulted in steep drop in sales, particularly of diesel, in the five border districts of AP, since the fuel was costlier in the state compared to neighbouring states like Tamil Nadu, Karnataka, Odisha and Telangana.
Transport vehicles started filling their tanks in other states before entering AP. Dealers in Anantapur, Chittoor, Kadapa, Srikakulam and Visakhapatnam districts complained of losses. Worried, they represented the government, requesting withdrawal of the enhanced price on diesel, so that the sales would pick up again.
