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Cheap diesel in Karnataka hits Telangana bunks

Price of diesel drops by Rs 6; AP faces similar situation.

Hyderabad: Fuel bunks located in the Telangana districts bordering Karnataka have witnessed a steep drop in diesel sales as trucks, private buses and other vehicles prefer to fill up at pumps in the neighbouring state. This is due to the Rs 6 price variation in diesel prices between the two states. A similar situation is being witnessed in AP districts bordering Karnataka.

Karnataka is bordered by six states — Telangana, Andhra Pradesh, Tamil Nadu, Kerala, Maharashtra and Goa. Vehicle users from Zahirabad and Narayankhed in Sangareddy district, Tandur in Rangareddy, Gadwal in Jogulamba Gadwal district and Maktal in Mahbubnagar district are visiting petrol pumps in Karnataka which borders these areas. The price variation has also fuelled blackmarketing in the border districts, and is causing a loss of revenue to the state.

Some people are procuring diesel in bulk from Karnataka and selling it in Telangana for Rs 2 lower than the actual price here. Fuel pump owners in the bordering districts are demanding that the government lower taxes to bring the price of diesel on par with the neighbouring state, otherwise they stand to suffer huge losses and face risk of closure. “About 90 petrol pumps located in bordering districts witnessed zero diesel business for the past few days. The pumps which used to sell 3,000 litres per day on an average have now lost over 90 per cent of business. Only those who require five litres, 10 litres etc are coming to our pumps.

Trucks, buses, transport vehicles, which require diesel up to 300 litres each to fill tanks opt for Karnataka,” said G.Vinay Kumar,general secretary, Telangana Petrol Dealers’ Association. Mr Kumar said that petrol pumps in border districts faced the threat of closure as all the southern states neighbouring Telangana were selling diesel for a price lower than Telangana.

( Source : Deccan Chronicle. )
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