Fuel sellers on Karnataka-Andhra Pradesh border look to cash in on price gap between states

The YSRCP government in Andhra Pradesh has declined to cut fuel prices, stating the revenue loss it would incur

The huge variation in fuel prices in Karnataka and Andhra Pradesh is allowing the petrol bunk operators along the border to cash in on the opportunity.

While some are putting up sign boards highlighting the price advantage Andhra motorists receive by filling their vehicle fuel tanks at their bunk in Karnataka, some went further ahead, distributing pamphlets in the nearby towns and villages of AP.

One such pamphlet by a Bharat Petroleum outlet operator at Kempapura (a border village near the Kolar Gold Fields) even came with a route map to the pump on the other side.

Following the Narendra Modi government's Diwali eve decision to cut the central excise duty by Rs 5 on litre petrol and Rs 10 on diesel, the BJP ruled Karnataka lowered VAT on petrol and diesel, bringing further relief to the state's public.

However, the YSRCP government of Jaganmohan Reddy has declined to do so in Andhra Pradesh, stating the revenue loss it would incur for the state.

Read | Telangana CM says won't reduce VAT on petrol, diesel

“Petrol costs about Rs 10 more and diesel is about Rs 12 costlier in Andhra now when compared to Karnataka. As our bunk is just about a kilometre from the border, we thought of this idea to distribute pamphlets to invite AP motorists to fill fuel tanks here,” KV Manjunath, proprietor of Karnataka Fuel Pump at Kempapura told DH, while hoping for some brisk business.

Kempapura is about 12 kms from Kuppam, AP opposition leader Chandrababu Naidu's constituency.

Pointing to the price variation between Andhra and Karnataka which has cut its share of taxes on fuel, the former CM is reminding Jagan of his election time promise “of making fuel prices in the state the lowest in the country.”

Naidu says that AP fuel prices are among the highest in the country now.

On Tuesday, the TDP cadres held protests at fuel stations across the state, shoving their motorbikes and honking horns.

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