‘Maha’ loss for refuel stations in Nizamabad

An oil company official said that Nizamabad zone comes under low value business area since fuel was almost always cheaper in Maharashtra.
Image used for representational purpose only. (File Photo)
Image used for representational purpose only. (File Photo)

NIZAMABAD: With lower taxes in neighbouring Maharashtra and Karnataka States, fuel bunk owners in Nizamabad district are suffering due to low sales.

Fuel prices in Maharashtra and Karnataka are lower than in Telangana due to higher VAT in the State. While a litre of petrol costs about `11 less in Karnataka, it is about `2 to `3 lower in Maharashtra compared to Telangana.

TSRTC officials said that on an experimental basis, they purchased fuel from Karnataka for one day. “However, keeping in mind the transportation logistics, we scrapped the idea after one day. TSRTC run only 11 buses to Maharashtra and because of that, we did not want to purchase fuel from there,” said a Telangana State Road Transport Corporation (TSRTC) official.

A Petroleum Dealers Association representative said that due to the taxation system, fuel prices are cheaper in Maharashtra and due to this, sales have been impacted in Nizamabad district. He said in addition to this, oil companies have encouraged competition between fuel outlets, which has further hit profit margins.

An oil company official said that Nizamabad zone comes under low-value business area since fuel was almost always cheaper in Maharashtra. “Vehicles passing through Nizamabad prefer to purchase fuel in Maharashtra. As one moves closer to Mumbai, fuel prices tend to be lower. Due to this, vehicles plying on the National and State Highways fill their tanks in Maharashtra.” He said that a similar situation prevails in Visakhapatnam since fuel prices are lower in Odisha.

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