The diesel mafia with multiple methods used to evade Value Added Tax (VAT) additional VAT and road cess, is not only affecting Andhra Pradesh’s revenue but also hurting licensed fuel dealers, according to petroleum traders. President of the Andhra Pradesh Federation of Petroleum Traders (APFPT) Ravi Gopala Krishna told The Hindu that bulk transportation to consumer outlets had emerged as a major concern. These outlets are mandated to procure diesel from suppliers within Andhra Pradesh to ensure tax compliance. However, some outlets were sourcing diesel from other States, including Gujarat, the Union Territory of Yanam and Karnataka, he alleged. He said bulk transport vehicles meant to carry diesel to Yanam were being intercepted for unloading fuel illegally in Andhra Pradesh.

Source: The Hindu January 31, 2026 16:49 UTC