KTR Asks Centre To Scrap Cesses On Petrol, Diesel

Lashing out at the Centre for asking the States to reduce their VAT (Value Added Tax) on fuel, Telangana IT and Industries Minister K T Rama Rao demanded that the Modi government instead scrap the various cesses on fuel and bring prices down to the 2014 levels.

He was reacting to the demands by the opposition in the State that the Telangana government cut its Value Added Tax (VAT) on fuel in response to the Centre's move to slash the excise duty on petrol and diesel, to ease the burden on the common man.

KTR tweeted that crude prices in May 2014 and now in May 2022 were almost the same, and yet petrol was Rs 70 per litre then and Rs 120 now.

"Telangana's VAT has remained unchanged. So what and who caused the price rise, and who is responsible?" he asked.

The minister further tweeted, "Special Additional Excise Duty, Road & Infrastructure Cess, and Agriculture & Infrastructure Development Cess, all unilaterally imposed by the union government, are responsible for the hike. Revenues from the above are NOT shared with the States. If cesses are scrapped, fuel prices will be at the 2014 levels (sic)."