Andhra Pradesh reduces fuel prices by Rs 2 amid Bharat Bandh

Amaravati, Sep 10: Amid a nationwide shutdown by Congress-led opposition to protest the spiralling fuel prices, the Andhra Pradesh government on Monday announced a reduction in value-added tax (VAT) on the price of petrol and diesel by Rs 2 per litre in the state.

chief minister N 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 in the country. The new rates will come into effect from Tuesday morning, a state government order read.

The ruling Telugu Desam Party (TDP) also organised separate demonstrations to protest the steep hike in prices of petroleum products.

During his regular teleconference with party leaders, Chandrababu Naidu criticised the Centre over the petro price hike and said it was leading to escalation in prices of essential commodities.

"During 2013-14, the crude oil prices were $105.52 per barrel. But when the price fell down to $46 dollars, too, the Centre did not reduce the petrol and diesel prices. Now, the crude oil costs $70 per barrel, but the Centre is increasing the petrol and diesel prices abnormally every day," he said.

The move comes a day after the Rajasthan government announced a reduction in VAT on fuel prices by 4 per cent.

Mumbai has the highest VAT of 39.12 per cent on petrol, while Telangana levies the highest VAT of 26 per cent on diesel. Delhi charges a VAT of 27 per cent on petrol and 17.24 per cent on diesel.