Demanding VAT cut, petrol pumps to shut on Oct 22-23

NEW DELHI: Petrol and diesel dealers in the national capital are in the grip of a crisis following the recent excise duty cuts made by the Centre and many states leading to losses here ranging 20-30 per cent, the Delhi Petrol Dealers Association (DPDA) said on Wednesday.

The DPDA has called for a shut-down by 400-odd petrol pumps in Delhi on October 22-23 to press for reduction in Value Added Tax (VAT) by Delhi government on diesel and petrol.

At a press briefing here, the DPDA said with the excise cuts making transport fuels cheaper in neighbouring states such as Uttar Pradesh and Haryana, besides the revenue loss, Delhi's high pollution levels will certainly worsen because of consumers opting to refuel with the lower grade fuels sold in these states. Last month, the Centre slashed the rate of petrol and diesel by Rs 2.50 per litre each which was followed by the reduction in VAT made by various states.

"In comparison with Delhi, petrol in UP and Haryana is cheaper by Rs 2.59 and Rs 1.95 per litre, respectively, while diesel in these two states is cheaper by Rs 2.02 and Rs 1.72 per litre, respectively," DPDA President Nischal Singhania," told reporters.

"Because of high price in Delhi and low prices in states like Uttar Pradesh and Haryana, customers are deserting the petrol pumps in Delhi leading to huge drop in sales," he said. According to Singhania, the price difference has caused a sharp drop of 50-60 per cent in sale of diesel and 25 per cent in petrol in Delhi during the current quarter.

"Almost 200 out of 400 pumps would be on a verge of closing down leading to retrenchment of thousands of workers affecting lakhs of people in the city," he said.