Fuel prices in Andhra Pradesh have been increased by Rs 4 per litre each of petrol and diesel, after the state government imposed additional tax late on Thursday night.
Petrol costs Rs 63.31 a litre and diesel, Rs 49.47 at Visakhapatnam on Thursday. This is to be revised upwards. The government order said that against the Value Added Tax (VAT) of 31 per cent on petrol, the new rate would be “31% + Rs 4 per litre”. A similar formula is followed for diesel, which now attracts “22.25% (tax) + Rs 4 per litre”.
The state government will earn an additional Rs 180 crore per year with the increase in tax. The finance department approved the proposal of the commercial taxes department to hike the VAT. The file has now been sent to the Chief Minister.