The diesel mafia is causing big losses to Andhra Pradesh’s revenue and licensed fuel dealers by evading VAT, extra VAT, and road cess. Ravi Gopala Krishna, President of Andhra Pradesh Federation of Petroleum Traders (APFPT), told The Hindu that bulk diesel delivery to consumer outlets is a big worry. These outlets, at places like Amaravati, industrial units, and mining sites, should buy diesel only from Andhra Pradesh suppliers to pay proper taxes. But some outlets are getting diesel from other states like Gujarat, Yanam, and Karnataka. “They are selling diesel cheaper than Andhra Pradesh prices, even though their licences only allow captive use, not commercial sales,” Mr. Gopala Krishna said. APFPT general secretary Peram Ravi Kumar said fuel bowsers made to supply heavy machinery with 2 to 3 KL diesel are being misused. Instead of on-site use, these bowsers sell diesel to transport vehicles. This creates unfair competition and cuts state revenue. Adviser P. Avinash Chand said there is no strong monitoring for bio-diesel outlets in Andhra Pradesh. He added, “Preventing unauthorised diesel sales would boost revenue and protect authorised dealers.” The federation will alert Chief Minister N. Chandrababu Naidu to seek strong action against illegal diesel trade. Chief Commissioner of State Taxes Babu A. told The Hindu that the tax department started many steps after talks with dealers and oil companies. Vehicles carrying diesel to Yanam are stopped if they unload diesel in Andhra Pradesh. Despite GPS, some trucks offload inside Andhra Pradesh then go to Yanam to fake delivery. Nearly 80% of such fraud is controlled now. The government also ordered that contractors must buy petrol, oil, and lubricants from Andhra Pradesh and show invoices. APFPT members said they informed the Civil Supplies department on violations at consumer and bio-diesel outlets. They hope a joint enforcement committee will fix this problem.