VIJAYAWADA: The increase in fuel prices in the Union Budget has not gone down well with the citizens of Vijayawada what with widespread unhappiness expressed by both customers and traders in the city. From 6 a.m on Saturday, petrol will be dearer by Rs 2.51 and diesel by Rs 2.46.
Similarly, bullion merchants are also unhappy over increase in customs duty on gold and other precious metals from the existing 10 per cent to 12.5 per cent.
Ch Mohan, a businessman, said, “I am not happy with this year’s Union Budget as increase in excise duty on petrol and diesel is not a good move. This will further burden the common man as every rupee counts for him.”
Almost echoing his views, K Bhaskar, a Registered Medical Practitioner (RMP) said, “The government is ruining the economy by burdening the common man with increase in excise duty on petrol and diesel. The NDA government had remained silent before the elections. But, once the BJP-led NDA came back to power after the elections, it has increased the excise duty on petrol and diesel. Though excise duty was raised by `1 rupee, the additional State tax will increase oil prices by more than `2.”
Petrol bunk dealers are also unhappy with the increase in excise duty on fuel. They say the Union government’s decision will increase the input costs.
Speaking to TNIE, K Venkatappaiah, manager of Pilot Service Station, said, “The government’s decision to increase excise duty will not only affect the consumers but also the traders. Our investments will increase but the return benefits will not be in proportion to the increase in investments. This is not a hike based on the crude oil price, it is purely a decision of the government to increase revenue, which affects the public.”
Bullion merchants say the decision to increase customs duty on gold and other precious metals from 10 per cent to 12.5 per cent may give rise to smuggling.
Kona Srihari Satyanarayana, general secretary of Bezawada Jewellery and Bullion Merchants Association, said, “During the Congress government, the customs duty on gold was only 2 per cent. Later, it was gradually increased to 10 per cent. We expected the government to reduce it in this Budget. Sadly, it did not happen. The decision will burden the customers and bring about a decline in sales. Also, smuggling is likely to increase.”