Protesting against the high rate of taxes on petrol and diesel in Punjab in comparison to neighbouring states, more than 3,400 petrol pumps stations on Wednesday remained shut across the state. The protest came close on the heels of a suicide committed by Mohali-based fuel pump owner GS Chawla after suffering business losses.
The protesting fuel pump dealers alleged that their businesses had been adversely affected due to the disparity in retail prices of petroleum products on account of the high rate of value added tax on petrol and diesel.
Notably, the State Government has already ruled out any move to bring down the VAT on petrol and diesel, which has been increased twice only recently in May and June.
As per the figures available, petrol in Chandigarh is cheaper by Rs 5.02 per litre, in Haryana by Rs 4.43 per litre, and in Himachal Pradesh by Rs 4.75 per litre. On the other hand, diesel in Chandigarh is cheaper by Rs 2.70 per litre, in Haryana by Rs 2.51 per litre and in Himachal Pradesh by Rs 3.86 per litre.
“Over 3,400 petrol pump dealers in Punjab kept their fuel stations shut today,” said Punjab Petrol Pump Dealers Association president Paramjit Singh, adding that the daily sale of petrol and diesel in Punjab is 3,200 kilolitre and 10,000 KL respectively.
With the petrol pumps observing a nine-hour long strike, from 8 am to 5 pm, the fuel consumers faced a lot of inconvenience. However, a few petrol pumps in some areas including Faridkot and Ferozepur remained open.
According to the fuel traders, petrol and diesel is costlier in Punjab in comparison to UT Chandigarh, Haryana and Himachal Pradesh.
There are 3,450 fuel pumps in Punjab and of them, 800 located in the border districts including Mohali, Fatehgarh Sahib, Rupnagar which are losing sales because of the high rate of value added tax on fuel.
“800 fuel pumps in the border district have lost more than 50 per cent of their sales,” said Singh.
According to fuel dealers, Punjab imposes 33.40 per cent taxes on petrol and 19.77 per cent on diesel.
However, VAT rate in Chandigarh is 22.45 per cent on petrol and 14.02 per cent on diesel while in Haryana the tax on petrol and diesel is 25.25 per cent and 17.60 per cent respectively.
The retail price of petrol in Punjab is Rs 82.35 a litre as compared to Rs 77.41 in Chandigarh and Rs 78.46 in Panchkula (Haryana), according to a fuel pump owner.
Similarly, the rate of diesel in Punjab is Rs 75.54 in comparison to Rs 72.91 in Chandigarh and Rs 73.54 in Panchkula. Retail prices of petrol and diesel are also dearer in comparison to what they are in Himachal Pradesh.
Fuel pump dealers sought from the state government to bring the tax rate on petroleum products at par with that of neighbouring states.
They were of the view that with reduction in VAT on petrol and diesel, the petroleum trade will revive in the state and would also lead to generation of more revenue.