Petrol, Diesel to cost Rs. 4 more per liter in AP

Hyderabad, Feb 6, 2015: AP Government has hiked the prices of petrol and diesel by Rs. 4 per liter with immediate effect. The decision comes a day after the Centre announced a peanuts financial package of Rs. 850 Cr towards development of backwards areas in the state and filling the state's budgetary gap. The hike was affected in shape of increase in VAT (Value Added Tax)to mop up additional resources to the tune of Rs.185 Cr per year. Announcing the hike, Finance Minister Yanamala Ramakrishnudu said that the Government has lost revenue of RS.400 Cr in the last few months. "To fill the loss, we have increased VAT," he said.