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High Fuel Prices: Political Slugfest Rocks AP

High Fuel Prices: Political Slugfest Rocks AP

The abnormal increase in petrol and diesel prices across the country has triggered a political slugfest in Andhra Pradesh, with opposition parties alleging that the state now has the highest fuel prices in the country.

Opposition leaders have accused the state government of imposing excessive taxes on petrol and diesel, thereby placing an unbearable burden on the public.

On Monday, the YSR Congress Party organised statewide protests demanding relief for consumers.

Party leaders alleged that fuel prices in Andhra Pradesh are significantly higher than in neighbouring states such as Telangana and Tamil Nadu, and urged the government to reduce Value Added Tax on petroleum products.

Even former YSR Congress Party leader and ex-Rajya Sabha member V Vijay Sai Reddy, who had earlier described the petroleum price hike as insignificant, advised Chief Minister N Chandrababu Naidu to reconsider fuel taxation.

Taking to social media platform X, Sai Reddy said petrol prices in Andhra Pradesh had reached Rs 113 per litre, which he described as the highest in the country.

He said the steep fuel prices were increasing the overall cost of living and placing additional financial pressure on ordinary citizens.

He further claimed that motorists from border districts in Andhra Pradesh were increasingly travelling to neighbouring states to purchase fuel at lower prices.

According to him, this trend was adversely affecting the state’s own revenue collections from fuel sales.

Sai Reddy suggested that the government should at least bring petrol prices in Andhra Pradesh on par with neighbouring states to provide some relief to the public.

He argued that such a move would discourage residents of border districts from crossing into neighbouring states for fuel purchases and would ultimately help protect state revenues.

At present, petrol prices in Andhra Pradesh are hovering around Rs 113 per litre, while prices in neighbouring Telangana are around Rs 110 per litre.

In Karnataka, petrol prices are around Rs 103 per litre, while in Tamil Nadu they range between Rs 100 and Rs 102 per litre.

Due to the price difference, vehicle owners from border districts such as Chittoor and Nellore are reportedly travelling to Tamil Nadu and Karnataka to refuel, leading to concerns over revenue leakage for Andhra Pradesh.

However, State Home Minister Vangalapudi Anitha strongly countered the criticism levelled by YSRCP leaders over the fuel price hike.

She presented comparative figures on fuel price increases during the first two years of the previous YSRCP government and the current Telugu Desam Party-led coalition government.

Anitha recalled that when the Central government increased fuel prices in early 2019, Chandrababu Naidu, who was in power then, had reduced the state burden by Rs 2 per litre to provide relief to consumers.

However, after coming to power, Jagan Mohan Reddy imposed multiple taxes and cesses on petrol and diesel, increasing the burden by Rs 8.59 on petrol and Rs 6.48 on diesel, she alleged.

She said the YSRCP government had imposed an additional VAT of Rs 4 per litre on petrol and diesel in July 2020, followed by an additional Re 1 road development cess in September the same year.

She further stated that in February 2020, the previous government imposed 31 percent VAT on petrol and 22.5 percent VAT on diesel, resulting in an increase of Rs 2.76 per litre on petrol and Rs 3.07 per litre on diesel.

Anitha criticised the previous government for not reducing fuel taxes even during the Covid-19 pandemic, despite several other states offering substantial relief to consumers.

She alleged that Andhra Pradesh was the only state that failed to lower fuel prices despite suggestions from the Centre.

Anitha argued that the recent increase was largely due to global factors, including war-related developments, and blamed the previous YSRCP government for the present fuel pricing situation in the state.

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Tags: Petrol Prices Andhra Pradesh