Vijayawada: AP Chief Minister N. Chandrababu Naidu announced in the Assembly today that the state government will reduce VAT on fuel by Rs 2 both on petrol and diesel from Monday evening onwards. With the reduction in VAT the state exchequer will fall short of Rs 1,180 crore per annum. Mr Naidu also found fault with the YSR Congress for not taking part in the Bharath Bandh because its party chief wanted cases against him to be dismissed. All other opposition parties took part in the bandh.
Introducing the resolution to cut VAT in the Andhra Pradesh Legislative Assembly, Mr Naidu said the price of petrol and diesel had reached its peak with the anti-people policies of the central government over the past four years. He extended his support to the nationwide protest against rising fuel prices. The Chief Minister condemned the statement of Union Petroleum Minister Dharmendra Pradhan that petrol prices had increased because of the increase in crude oil prices in the international market and increase in VAT by state governments. He said that the statement is far from the truth and misleads people.
The Chief Minister said that the crude oil price per barrel was US $ 105.52 in 2013-14, went down to US $ 46 in 2015-16 and stands at US $ 72.23 at present. The petrol price per litre in 2014 was Rs 68.51, while today it is Rs 86.71. Likewise, the diesel price went from Rs 62.98 per litre in 2014 to Rs 79.98 at present. Mr Naidu in fact said that the central government had failed to reduce the price of petrol and diesel despite the fall in the price of crude oil in the international market.
The Chief Minister said that excise duty on diesel was Rs 3.56 per litre in 2014, and went up to Rs 17.33 by September 2017. The excise duty on petrol per litre was Rs 9.48 in 2014, increasing to Rs 19.48 by 2018. In addition, the central government imposed additional burden of Rs 7 on petrol and Rs 8 on diesel in the name of infrastructure tax.
He said that the central government has collected Rs 10 lakh crore in the past four-and-a-half years in the name of excise duty, thus burdening the common man. He said the increase in petrol and diesel will result in increase in prices of essential commodities. The Chief Minister demanded that the central government reduce petrol and diesel prices immediately to protect the interests of the common man.
