MANY AP BORDER FUEL OUTLETS SHUT SHOP

Abnormal difference in diesel prices between AP and Karnataka/ Pondicherry is jolting fuel outlets in border areas as hundreds of outlets in AP are incurring huge losses. Many of them have closed shop following poor business due to a difference of Rs. six on a litre of diesel. Meanwhile, the vast difference in fuel price was directly benefiting mostly construction companies and other engineering sectors involved in government contract works.

This peculiar situation has been prevalent in the state for the past several years because of the difference of Value Added Taxes compared to neighbouring states.

Diesel price was `97.29 per litre in AP while `91.10 in Yanam of Puducherry and

`92.97 in Karnataka on Monday. The fuel outlets in border areas of AP were unable to compete with Karnataka outlets while transporters and construction companies prefer to purchase from Karnataka outlets in Rayalaseema region and Yanam outlets for ongoing projects in other parts of the state. The companies reportedly quote tenders about purchase of fuel from AP outlets but procure unofficially from other states and stand to benefit by more than 12 per cent.

Prasad, an analyst, observed that about 35 per cent of the budget should be spent on fuel in various forms, digging machinery, construction and transportation.

An outlet dealer from the borders of Madakasira area lamented that the business was not even to the level of petty shops in rural areas.

"We need to pay at least

`15000 towards salaries of workers", he said.