New Delhi: Andhra Pradesh Chief Minister Chandrababu Naidu, today announced a reduction in petrol and diesel prices by Rs 2 each in the state, amid a nationwide shutdown by Congress-led opposition to protest the increasing fuel prices. Chandrababu Naidu made the announcement in the state assembly after holding a high-level meeting in the wake of the Bharat Bandh call given by the Congress and other opposition parties.
Chandrababu Naidu's decision comes a day after Rajasthan CM Vasundhara Raje announced a four-per cent reduction in value-added tax (VAT) on petrol and diesel .The reduction in VAT reduced the fuel price by Rs 2.5 per litre in the state.
Andhra Pradesh has the third highest percentage of VAT on petrol at 35.77% after Maharashtra and Madhya Pradesh and the highest on diesel at 28.08%.
Driven by external factors such as increasing crude prices and the US sanctions on Iran, India continues to reel under increasing oil and diesel prices.
Senior Congress leader Selja Kumari demanded petrol and diesel be brought under the ambit of Goods and Services Tax.