Andhra Pradesh loses ₹2,500 crore in revenue every year.
Vijayawada: The Andhra Pradesh government is losing an estimated ₹2,000 to ₹2,500 crore annually in revenue due to the illegal sale of diesel across the state, resulting in losses of Value Added Tax (VAT) and other taxes.
The diesel mafia, primarily operating from Yanam, Puducherry, Gujarat, and Karnataka, is procuring diesel from oil refineries and illegally transporting it in large quantities to sell at worksites in Amaravati and other locations.
While the price of diesel at fuel stations is ₹97 per liter, the diesel mafia is selling it at a lower price of ₹85 to ₹90. The state government levies a 22.25 percent VAT on the base price, in addition to an extra ₹4 VAT and a ₹1 per liter road cess.
Petroleum dealers say that hundreds of oil tankers with a capacity of 40,000 liters are entering Andhra Pradesh and selling diesel in bulk for commercial use. Tankers with a capacity of 2 KL or 3 KL are also entering the state without valid permits and selling the product to earn higher profits.
Also read – HC directs TTD EO to file affidavit in Parakamani theft case
Since this illegal trade has been going on for some time, petroleum traders have observed that it is not only causing revenue losses to the state exchequer but also affecting their daily business. They have brought the issue to the attention of the state government and have requested that circulars be issued to curb this practice.
Gopal Krishna, president of the AP Federation of Petroleum Traders, said, “We have approached departments like Civil Supplies and Transport and will also bring this matter to the notice of the Chief Minister.” Also read – No evidence of animal fat in ghee ladoos, says Bhumana citing SIT report
Fuel dealers have urged the government to form a joint committee with stakeholder departments such as Civil Supplies, Transport, Explosives, Legal Metrology, Police, Commercial Taxes, Vigilance, and oil marketing companies so that they can finalize an action plan to curb this practice.
“Our daily sales at our fuel stations have dropped drastically due to illegal sales, and the cash flow at the outlets is being affected. We are unable to even meet the mandatory operational expenses,” said Ravi Kumar, General Secretary of the AP Federation of Petroleum Traders.
