Published: Wed, September 12, 2018
Markets | By Otis Pena

Andhra Pradesh Government Announces Reduction in Petrol, Diesel Prices by Rs 2

Andhra Pradesh Government Announces Reduction in Petrol, Diesel Prices by Rs 2

But on Tuesday, the Andhra Pradesh assembly passed a resolution to roll back petrol and diesel prices by Rs 2 per litre. Opposition parties have even called for Bharat Bandh today affecting the day-to-day life of common man across India. In Hyderabad, petrol costs Rs 85.75 and diesel Rs 79.37.

The Delhi High Court on Wednesday refused to interfere in a public interest litigation (PIL) seeking the sale of petrol and diesel at reasonable prices instead of letting oil companies increase the rates exorbitantly. While on purchase of 25,000 litres of diesel the buyer can get an automatic washing machine, they can get a split AC or a laptop on purchase of 50,000 litres. They blame the government's unwillingness to cut excise duty for the high fuel prices and consumer burden.

The petition has also alleged that the government was spreading "misleading information" by connecting the rising fuel prices here with the global increase in the rate of crude oil as the cost of petrol and diesel did not go down when crude was cheaper.

Nearly half of the retail selling price of the two fuels is made up of central and state taxes.

On the 15th day of consecutive hikes, petrol prices increased on Tuesday by Rs 0.14 and diesel by Rs 0.15, from 6 a.m, barely two days before the state's biggest 10-day Ganeshotsav festival begins.

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AP is the second state to do so in recent times after Rajasthan.

Here, the prices of both diesel and petrol remain under Rs 80 per litre.

Since there are no immediate elections in AP, Naidu could claim that he had understood the pain of the people and hence, took the decision, though as a matter of fact, AP has the highest Value-Added Tax on diesel and petrol. Mr Naidu in fact said that the central government had failed to reduce the price of petrol and diesel despite the fall in the price of crude oil in the global market.

"A $1/barrel increase in oil prices, translates in a revenue of Rs 1,513 crore to all major (19) states", said the note authored by SBI's Group Chief Economic Adviser Soumya Kanti Ghosh.

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