The hike in diesel prices would also have a cascading effect on the prices of essential commodities and hit people belonging to lower and middle-income groups.
The move, the biggest hike in recent times, came in for sharp criticism from vehicle users, who were stung by the quantum of hike. Adding insult to injury, levy of excise duty on fuel in the State only jacked up the fuel prices that much steeper. Andhra Pradesh is said to have the highest fuel prices in the entire country.The hike in diesel prices would also have a cascading effect on the prices of essential commodities and hit people belonging to lower and middle-income groups.
Vehicle owners said they were already bearing the burnt of the frequent hikes in fuel prices effected over the last one year. "The Government should think of alternative plans like tax reduction," said M. Venkateswara Rao, Assistant Manager, Finance, Nagarjuna Constructions.
"We have to face additional financial problems after re-opening of schools and colleges and the Government decision will leave us with no option except borrowing money at higher interest rate," E. Mohan Rao, a retired bank employee and resident of Rezimental Bazaar said.
Twin Cities Local Lorry Owners Association General Secretary K. Rajeswar Rao said the prices of essential commodities could increase from 5 to 10 per cent with the new fuel prices. "We will discuss the issue with our State leaders for future course of action," Mr. Rao said.
