With diesel getting costlier than petrol in Odisha, the petroleum dealers association on Monday said they would approach the State Government for reduction of Value Added Tax (VAT) on diesel.
The members of Utkal Petroleum Dealers’ Association said the VAT of 24 per cent on diesel in the State is comparatively higher than neighbouring States for which they are facing a slump in sales, particularly on the highways.
While the price of diesel is Rs 77.24 per litre in neighbouring West Bengal, the same costs Rs 80.53 in Jaleswar of Baleswar district.
The dealers association claimed that the business of several petrol pump owners in the State along the border has reduced by almost 50 per cent as most consumers are moving to West Bengal to tank up fuel.
Notably, diesel was being sold at a higher rate than petrol for the third consecutive day in Bhubaneswar on Monday. The diesel price stood at Rs 80.94 per litre against Rs 80.36 for one litre of petrol.
However, the Odisha Government has blamed the Centre for the trend.
Finance Minister Sashi Bhusan Behera said “The base price of diesel is nearly Rs 5.13 higher than petrol. Since the day NDA came to power, there is a deviation in the pricing and tax has been hiked by almost 330 per cent as compared to UPA time,” said Behera.
Behera further informed that the base price of petrol was Rs 48.89 and for diesel it was Rs 44.72 in 2014 while in 2018 the base price of petrol stands at Rs 43.08 against Rs 48.21for diesel.
The BJP on the other hand demanded that the Odisha Government should reduce VAT on diesel.
“Fuel prices are much cheaper in several other States including West Bengal, Chhattisgarh, Andhra Pradesh and why the rates are higher in Odisha. The State Government needs to introspect so that people here could get some relief,” said State BJP spokesperson Golak Mohapatra.