Strike by over 400 fuel pumps cripples Capital

New Delhi: Petrol pumps across the national Capital were shut on Monday in protest against the Delhi government's refusal to cut sales tax (VAT) on petrol and diesel.

Except for a dozen company-owned-company-operated (COCO) petrol pumps in the city, all pumps refused fuel, sending motorists running low on fuel and scrambling for alternate refuels.

"All 400 petrol pumps and linked CNG pumps shut operations from 6.00 am Monday and will remain closed till 5 am tomorrow (Tuesday)," said Delhi Petrol Dealers Association (DPDA) president Nishcal Singhania.

Pump operators, however, refuelled emergency service vehicles like ambulances and government vehicles so as to ensure essential services are not hit, he said.

Long queues were witnessed at COCO outlets that were the only lifeline for motorists in Delhi.

DPDA said the Centre, with effect from October 5, slashed prices of petrol and diesel by Rs 2.50 by way of a cut in excise duty and asking state-owned oil firms to bear subsidy. This was matched by several states by reducing value-added tax (VAT).

Haryana and Uttar Pradesh have reduced VAT, he said. "But Delhi government refused to reduce VAT on petrol and diesel, resulting in fuels becoming more expensive than bordering Haryana and UP."

Petrol in Delhi Monday was priced at Rs 81.44 per litre after a 30 paise cut in rates. Diesel is being sold at Rs 74.92 a litre, down 27 paise over the previous day.

Petrol is priced at Rs 80.14 a litre in Gurugram, Rs 79.02 in Noida, Rs 78.87 in Ghaziabad and Rs 80.39 in Faridabad - the cities which share borders with Delhi.

Diesel in Gurugram is priced at Rs 73.78 per litre, at Rs 73.02 in Noida, Rs 72.88 in Ghaziabad and Rs 74.01 in Faridabad.

Cheaper petrol and diesel in UP and Haryana has resulted in motorists, particularly truckers, refuelling in these states rather than in Delhi.

"Because of the high price in Delhi and low prices in states like UP and Haryana, customers are deserting the petrol pumps in Delhi," he said.

Singhania said the purpose of the day-long strike was to invite the attention of the Delhi government towards the issue and the Association will decide on the next course of action depending on the response of the government.

DPDA asked the Delhi government to immediately follow leads of other states and reduce VAT on petrol and diesel to encourage commuters to buy Euro-VI grade fuel.