Andhra Pradesh Chief Minister N Chandrababu Naidu on Monday announced reduction of Rs 2 per liter in prices of petrol and diesel. He announced the reduction in the value added tax on the fuel in the State Assembly when most of the non BJP political parties were observing Bharat Bandh (country wide shut down) and protesting against the steep hike in the fuel prices in the recent months. While the TDP did not officially supported the shut down call of Congress party, its workers organised protest programs.
The new prices will come in to effect from Tuesday morning. Rs 2 per liter reduction will put a burden of Rs 1,120 crore on the state exchequer, Naidu said.
Andhra Pradesh has become the second State in the country after Rajasthan, a BJP ruled State. Rajasthan Chief Minister Vasundhara Raje announced on Wednesday night reduction of 4 per cent VAT on fuel which will result in reduction of prices by Rs 2.5 per liter both of diesel and petrol.
Pointing out that most of the taxes on the fuel were going in the kitty of the Centre, Naidu said that the Union Government should also decrease the taxes to save the people from the burden of burgeoning prices of diesel and petrol.
“The increase in the prices of petrol and diesel has become an unbearable burden for the people of all sections. It is painful that the Centre has not taken any measure to reduce the prices which was causing acute financial difficulties to the people.
In solidarity with the countrywide protest Telugu Desam supporters also took active part in protest programs and expressed the resentment of the people”, Naidu said in a statement in the State Assembly,
Central Government was doing propaganda that the prices were increasing because of the increase in the crude price in international market and increase in the VAT by the State Government. Union Petroleum Minister Dharmendar Pradhan has said that reducing the petroleum prices was not possible. This is far from truth and an attempt to hoodwink people. I condemn it”, he said.
“The way the Centre and the oil companies have increased the prices over the last four years has caused nationwide anger among the people. Extraordinary response to today’s Bharat Bandh is a proof of it”, he added.
Drawing a parallel with 2014, Naidu said that at the time the crude price in the international market stood at 105.5 US dollars and today it was only 72.23 US dollars per barrel. Petrol price in 2014 was Rs 49.60 and today it has gone up to Rs 86.71. Diesel price of Rs 60.98 in 2014 has now gone up to Rs 79.80. The excise tax by the central on diesel was increased from Rs 3.50 in 2014 to Rs 17.33 in 2017 and on petrol it was increased from Rs 9.48 to Rs 19.48. Central Government has also added a cess of Rs 7 and 8 on diesel and petrol, Naidu said blaming the present burden of the people on the Centre. Centre has collected massive 10 lakh crore (Rs 10 trillion) from the people over the last four years in the form of the excise tax on petrol and diesel, he said.
The call for Bharat Bandh evoked a mixed response in both the Telugu state. Massive protest demonstrations were held in Vijaywada, Visakhapatnam and Tirupati and other major cities and towns. Apart from Congress and left, the ruling TDP also took out procession and held demonstrations affecting the traffic on the roads.
In Vijayawada the state Congress president N Raghuveera Reddy took out a bullock cart rally.
In Telangana too the Bandh call had partial impact. Opposition Congress organized protest demonstration at different places and organized Road blockades demanding the reduction in central taxes on the oil prices. In Hyderabad the opposition call did not have much impact as the traffic remained normal and bus services operated as usual. Earlier in the morning the workers of Congress and left parties held sit in protest outside all the bus depots in Hyderabad and other districts. Hundreds of workers were taken in to custody by the police all over Telangana.
Many private schools and colleges were also closed in view of the protest.