HYDERABAD — Union Minister for Coal and Mines G. Kishan Reddy on Saturday launched a sharp attack on the Telangana state government, demanding an immediate reduction in Value Added Tax on petrol and diesel — pointing out that Telangana levies the highest VAT on fuel anywhere in the country, even as the central government moves decisively to shield citizens from rising oil prices triggered by the Israel-America-Iran war.
Addressing a press conference at CGI Towers in Hyderabad, Kishan Reddy outlined the measures taken by the central government to ensure adequate supplies of LPG, petrol, and diesel across Telangana — while simultaneously putting the state government firmly on the spot over its fuel tax policy.
Telangana Charges Highest VAT in India
The numbers Kishan Reddy placed before the public were stark and difficult to dispute.
Telangana has been levying VAT at 35.20 percent on petrol and diesel — the highest rate in the entire country — for the past twelve consecutive years. Not once in that period, the minister pointed out, has the state government seen fit to reduce this burden on its citizens by even a single paisa.
The contrast with neighbouring states makes the figure even harder to justify. Andhra Pradesh levies VAT at 31 percent. Karnataka charges 29 percent. Maharashtra imposes just 26 percent. Yet Telangana — governed first by the BRS and now by the Congress — has maintained its 35.20 percent rate without revision.
"Why is Telangana levying 35.20 percent when neighbouring states charge significantly less?" Kishan Reddy demanded. "Why has this not been reduced? The Congress party beats the drum about KCR's people-friendly governance — but in twelve years, not one paisa of VAT has been cut. Reduce it now."
The minister's challenge was direct and unambiguous — and it placed the Telangana government in an uncomfortable position at a time when fuel prices are already under pressure from global conflict.
Centre Acts to Cushion Global Oil Price Shock
Kishan Reddy made clear that the central government under Prime Minister Narendra Modi has moved proactively to protect Indian citizens from the price shocks rippling out of the Middle East conflict.
With the Israel-America-Iran war disrupting global oil markets and pushing crude prices upward, the central government has reduced excise duty on petrol and diesel — a direct intervention designed to prevent pump prices from spiralling out of control.
The minister urged state governments across the country to follow the centre's lead by cutting their own VAT rates — reducing the cumulative tax burden on fuel and passing the benefit directly to consumers. Telangana, he made clear, has the most room to move — and the most obligation to act.
Ample Stocks — No Need for Panic
Turning to address growing public anxiety over fuel availability, Kishan Reddy was reassuring and categorical.
Telangana has abundant stocks of LPG, petrol, and diesel, he said. There is no shortage. There is no crisis. And there is absolutely no reason for citizens to panic.
Oil companies are currently providing a three-day credit facility to petrol and gas agencies — a measure designed to ensure smooth and uninterrupted supply across the state. The pipeline of fuel into Telangana remains fully functional, and the central government is working actively to ensure that oil and gas supplies reach India on schedule despite the turbulence in global markets.
Prime Minister Narendra Modi, Kishan Reddy added, is personally monitoring the situation — a signal of the seriousness with which the central government is treating the issue.
The minister also urged citizens to use LPG, petrol, and diesel conservatively and responsibly during this period of global uncertainty — a call for collective prudence rather than panic buying.
No Lockdown — Stop the Rumours
Kishan Reddy used the press conference to address one of the most damaging pieces of misinformation currently circulating on social media — the claim that India is preparing to impose a fresh lockdown.
The rumour, he said, originated from a misreading and misrepresentation of Prime Minister Modi's recent remarks in the Lok Sabha. Social media users have uploaded thousands of posts falsely claiming that a lockdown is imminent — posts that have spread rapidly and caused unnecessary alarm among the public.
"Do not believe these rumours," Kishan Reddy said firmly. "There is no lockdown coming. The Prime Minister's words have been taken completely out of context and twisted beyond recognition."
Arrest Those Spreading Rumours
The minister reserved his sharpest words for those deliberately spreading false information on social media — and he had a specific request for Chief Minister Revanth Reddy.
It is social media videos and fake news posts, Kishan Reddy argued, that have caused vehicle owners to queue up at petrol stations in panic — creating artificial demand and long lines at pumps that would otherwise be functioning normally. The same misinformation has created what he described as a "fire in kitchens" over LPG cylinder availability — panicking households into hoarding behaviour that serves no one.
"We have requested Chief Minister Revanth Reddy to arrest those who are creating and spreading rumours on social media," Kishan Reddy said — a demand that underscores the seriousness with which authorities are treating the misinformation problem.
Industry Representatives Present
The press conference brought together senior officials from India's major oil marketing companies alongside representatives of Telangana's petroleum and LPG dealer communities.
Present at the event were Indian Oil Corporation Executive Director Piyush Mittal, BPCL Chief General Manager (Retail) Nitish Selukar, HPCL Chief General Manager (Retail) Sushil Kumar Ray, Telangana Petroleum Dealers Association President Amarendra Reddy, and State LPG Owners Association President Jaganmohan Reddy, along with other senior officials.
Their collective presence at the press conference was itself a message — that the fuel supply chain in Telangana, from the national oil companies down to the local dealer level, is functioning normally and is committed to meeting public demand.
The Political Subtext
Saturday's press conference was simultaneously a public reassurance exercise and a pointed political attack — and Kishan Reddy made no attempt to disguise either dimension.
By highlighting Telangana's 35.20 percent VAT rate and the state government's twelve-year failure to reduce it — under both BRS and Congress administrations — the Union Minister placed a clear political marker. At a time when global oil prices are rising and the central government is cutting excise duty to protect consumers, Telangana's continued imposition of the country's highest fuel VAT becomes an increasingly difficult position to defend.
The ball, Kishan Reddy made abundantly clear, is now firmly in the Telangana government's court.
The Telangana state government had not responded to Minister Kishan Reddy's statements at the time of publication. This report will be updated as further developments emerge.
