HYDERABAD: Fuel pump owners in Telangana complain of a slump in diesel sales in the State due to the availability of diesel at lower prices in the neighbouring states. On Saturday, the price difference of diesel between Telangana and neighbouring states of Karnataka and Maharashtra was Rs 3 per litre. The fuel pump owners allege that a majority of transport vehicle operators are getting diesel from the neighbouring states due to the difference in price.
Andhra Pradesh, Karnataka, Chhattisgarh and Maharashtra have reduced fuel prices last September-October after people complained of skyrocketing prices. The reduction in price was between Rs 2-2.5 and relevant amendments were made to the Value Added Tax (VAT) and sales tax laws in their respective governments.
However, the Telangana government did not reduce fuel prices. As a result, the fuel price gap between Telangana and other states is more. Fuel pump owners in border districts claim a dip of 50 per cent in diesel sales.
“The decrease in diesel prices in the neighbouring states is being felt by fuel pump owners in Telangana. Why would anyone fill their tank in Telangana when the price of fuel is cheaper outside the State,’’ M Amarender Reddy, president, Telangana Petroleum Dealers Association, said.
On Saturday, the diesel price in Nizamabad district was Rs 74.03 whereas in Maharashtra’s Nanded it is being sold at Rs 71.24. The price difference between Karnataka’s Bidar and Sangareddy is Rs 3.36.
However, fuel companies and State commercial tax officials argue that State would not be affected by the price. “Only those who frequently commutes will have some benefit by fuelling in the other state. The affect of this is will be insignificant on the State’s revenue,’’ a senior commercial tax official said.