Petrol price crosses Rs 95, diesel inching to Rs 90

VIJAYAWADA: The fuel prices reached an all-time high in the State on Tuesday with petrol costing more than Rs 95 and diesel inching closer to  Rs 90 per litre. This effectively means that the prices of petrol and diesel have increased by more than Rs 15 per litre in one year. The price of petrol stood at Rs 79.63 per litre on January 4, 2020. Though the fuel prices slightly vary from city to city even within the State, petrol cost more than Rs 95 per litre all over AP except in Visakhapatnam. In the latest revision, petrol price hiked by 29 paise and diesel by 36 paise. 

The fuel prices are the highest in Tirupati when compared to other major cities in the State. The price of petrol rose by more than Rs 12 in the State since the start of 2021.According to petroleum dealers, the steady increase in crude oil prices in the international market, apart from the levy of excise duty and additional VAT imposed by the Centre and the State government, are the major reasons for the steep hike in petrol and diesel prices in the State. 

Andhra Pradesh levies VAT much higher than neighbouring Telangana. At present, the State government is collecting Rs 19.20 as tax on three types of diesel that include 22.25 per cent VAT, Rs 4 per litre as additional tax and Rs 1 as Road Cess. When it comes to petrol, 31 per cent VAT is levied apart from an additional VAT of Rs 4 per litre and Rs 1 Road Cess. 

“The price hike will have a cascading effect on the common man, said Taxpayers Association general secretary MV Anjaneyulu. Speaking to TNIE, he said the steep rise in petrol and diesel prices will have an impact on all the sectors, especially on the transport sector. “Even as the public are trying to come out of the hardship caused by the Covid-19 pandemic, the Centre and the State government are not evolving any measures to reduce the skyrocketing fuel prices. Most of the commodities will become costlier with every increase in fuel prices. The overall price rise that follows an increase in fuel prices will burn a hole in the pocket,” he opined.

Andhra Pradesh Lorry Owners’ Association (APLOA) general secretary YV Eswara Rao said that the transport sector is already reeling under crisis after the lockdown. The steady rise in the price of diesel is compounding the woes of the  transport sector. With the rise in fuel prices, the cost of goods will also go up imposing a burden on the common man. “We are requesting the Centre and the State government to reduce the excise duty and VAT on the fuel at least for a year until the situation gets normal post Covid-19,” he said. The APLOA is planning to submit a representation to Chief Minister seeking measures to benefit the transport sector, he added.