VAT on petrol, diesel: Big blow to TS exchequer

Hyderabad, Jan 25: Ever since Telangana government imposed an additional Rs 2 per litre VAT on petrol and diesel, fuel sales fell drastically in Telangana. Following the body blow, the Telangana government is seriously considering to rollback the increase in VAT in the next few days, informed sources said. The sources said the sale of diesel has been impacted more than petrol in Telangana with heavy motor vehicles crossing over the state borders and opting to refuel in pumps in neighbouring states including AP. The idea is to save almost Rs 2.50 per litre by avoiding to pay the additional VAT.