Fuel outlets on Karnataka, Maharashtra borders seek VAT cut

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ANANTAPUR: Even as hundreds of fuel outlets on Karnataka and Tamil Nadu borders have already been sustaining substantial losses due to variations in fuel prices, the choice of the Karnataka federal government to minimize VAT (value-added tax) on petroleum prices came as a big shock for these fuel outlets. After the Centre decreased gas and diesel rates, all at once Karnataka reduced barrel on fuel resulting in the rate of diesel at Rs 85.98 and gas Rs 101.64 per litre.

While in AP outlets, diesel cost is Rs 97.14 and petrol Rs 111.11 per litre. Difference between AP and Karnataka is Rs 11.16 per litre diesel and Rs 9.47 on petrol. This has a negative influence on the fuel outlets situated closer to Karnataka border locations. Individuals choose Karnataka outlets to get more quantity of fuel, and even bikes that require little amounts of fuel have begun rushing to Karnataka outlets.

Madakasira municipality is on Karnataka borders and Karnataka fuel outlets exist about 5 kms away from the town, and there is simply 10 metres distance between AP and Karnataka border outlets.

In addition to routine service of bikes and four-wheelers, the construction business have actually been already choosing to buy diesel from Karnataka outlets in Rayalaseema area while the Polavaram based companies depend upon Yanam fuel outlets however declaring the rates of AP in the estimates and bills. Diesel plays an essential role in the federal government works and projects in building works for transportation of goods, material to the websites.

L. V. Prasad, an analyst, said about 35 per cent of the budget should be invested on fuel in numerous kinds, digging equipment, construction and transport. While cost differs more than Rs11, the subcontractors choose to buy fuel from other states to get more revenues.

A dealership from the borders of Madakasira area regreted that business was not even equal to petty suppliers in rural areas who were purchasing fuel from Karnataka and doing illegal company. Each outlet pays a minimum of Rs15,000 each towards incomes of employees.

Numerous interstate buses and lorries plying by means of AP towards Bengaluru or Maharashtra are purchasing diesel in Karnataka outlets and no car prefers to complete AP outlets since of substantial distinction in rates, according to a dealer from Chilamathur in Hindupur area.

Another dealer from Madakasira stated the outlets could be closed if the circumstance continued. “The state federal government need to reduce costs and make them equivalent to Karnataka to us,” he stated.



Published at Fri, 05 Nov 2021 13:43:45 -0500