Andhra Pradesh cuts petrol, diesel prices by Rs 2/litre

New rates of petrol and diesel will come into effect from Tuesday morning

Andhra Pradesh Chief Minister Chandrababu Naidu | PTI

Andhra Pradesh chief minister Chandrababu Naidu has on Monday announced a reduction in petrol and diesel prices by Rs 2 each per litre in the state. The new rates of petrol and diesel will come into effect from Tuesday morning, while the orders for the same will be issued later on Monday, Naidu said. 

Andhra Pradesh is the second state in a day to cut VAT on petrol and diesel prices. On Sunday, poll-bound Rajasthan had reduced the taxes levied by the state on petrol and diesel. Rajasthan Chief Minister Vasundhara Raje announced a four-per cent reduction in value-added tax (VAT) on petrol and diesel, effectively reducing the prices by Rs 2.5 per litre.

The reduction in VAT will cost the Andhra Pradesh exchequer around Rs 1,120 crore a year. The slash in petrol and diesel prices comes amid the Bharat bandh called by the Congress on Monday. The dawn-to-dusk strike saw the Congress generating support from around 22 parties in the opposition, including the left and the AAP, and has brought the nation to a standstill. 

Naidu's TDP had earlier this year ended its four-year-long alliance with the BJP after the latter failed to deliver on the promise of special status to Andhra Pradesh.