AP slashes petrol prices by 2/litre

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Amaravati: In a major relief to the people of Andhra Pradesh, Chief Minister N Chandrababu Naidu on Monday announced a cut of Rs 2 in the price of diesel and petrol per liter. The relief would come into effect from Monday midnight.

Interestingly, Naidu announced the cut on the day when the Congress called a nation-wide bandh protesting the steep rise in the prices of both petrol and diesel.

The cut would be in the Value Added Tax (VAT) levied on fuel sold in the outlets by the state government. It is equal to half of Rs 4 per litre VAT that the state has been imposing on fuel sold in the state.

The Chief Minister, introducing a resolution in the Assembly to this effect, said the decision to cut the price was taken in view of the prices hitting an all-time high causing severe hardship to the people. The cut of Rs 2 per litre on petrol and diesel would mean a loss of Rs 1,120 crore of VAT per annum to the state exchequer.

The Chief Minister took exception to Union Petroleum Minister Dharmendra Pradhan’s statement that the price rise was on account of hike in the prices of petroleum products in the international market and increase in VAT by the state government. “His statement is misleading and is far from the truth,” he said.

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