HYDERABAD / WARANGAL: The upward trend of petrol and diesel continues and touched the highest-ever in Hyderabad on Sunday. Petrol was priced at Rs 78.09 and diesel at Rs 70.16 per litre respectively, resulting in vehicle owners tightening their wallets.
“I filled for Rs 50 and got less than 600 ml of petrol. At this rate, I will not be able to manage my finances and have to move my family back to our village,” said 35-year-old Satish P who works with a private firm.
The fuel rates have been on an upward trend since March 1, 2018, when the rates touched Rs 75.79 per litre in the city. By March 31, the rates had touched Rs 77.89 rising 2.70 per cent a month.
The central government had raised excise duty on fuel nine times between November 2014 and January 2016. The only time the central government cut the tax on fuel was just once in October 2017 by Rs 2 a litre, that temporary relief has since evaporated.
The Ministry of Oil and Natural Gas, shortly before the Budget 2018-19, had approached the Finance ministry requesting the reduction of excise duty on petrol and diesel. The request was keeping in mind rising international fuel rates. However, it was not taken into account. This is not without reason. By the end of December 2017, Centre had incurred a loss of Rs 26,000 crore in annual revenue from Value Added Tax (VAT).
When it comes to state VAT, Telangana levies a 14 per cent VAT amounting to Rs 25,000 crore in taxes annually. The October 2017 reduction of Rs 2 on fuel cost the state exchequer Rs 3,000 crore. The central government too faces losses in tune to Rs 26,000 crore in annual revenue by the end of December 2017.
Vehicle users in districts of Northern Telangana a worried lot
In Warangal city, the price of petrol stood at Rs 77.71 per litre, whereas it was Rs 78.10 in litre in Karimnagar town on Sunday. “Prices of petrol are going up constantly since last few months. We are expecting it to go up further tomorrow,” said Ansari, manager at an Indian Oil fuel station, Hanamkonda, Warangal. “Earlier, petrol and diesel price hikes used to trigger protests by opposition parties. But since prices are being revised daily, even steep rise goes unnoticed. No one cares what was yesterday’s price or even today’s. Let’s hope people take notice,” said Ravikant Rao, a software professional from Hanamkonda.
