Petrol pumps strike: Delhi has a higher VAT than neighboring states.All petrol pumps along with linked Compressed Natural Gas (CNG) dispensing units in the national capital are shut on Monday in protest against Delhi government's refusal to reduce Value Added Tax (VAT) on fuels.The protest started from 6 am on Monday and will remain till 5 am on Tuesday.Delhi has a higher VAT than neighboring states.
In comparison to Delhi, fuel rates in bordering states like Uttar Pradesh and Haryana are cheaper,the Delhi Petrol Dealers Association (DPDA) said in a statement recently.On October 4, the Central government announced a cut of Rs.
2.50 a litre each for petrol and diesel and urged state governments to match the reduction to provide relief from high fuel prices.
Maharashtra and Gujarat were among the first states to announce reductions of Rs.
2.50 per litre each.
Chhattisgarh, Jharkhand, Tripura, Uttar Pradesh, Madhya Pradesh, Himachal Pradesh, Haryana, Assam, Uttarakhand, Goa, Arunachal Pradesh, and Jammu and Kashmir later announced similar moves.
However, Delhi government refused to reduce VAT on both petrol and diesel, as reported by news agency Press Trust of India (PTI).
DPDA urges the Delhi government to immediately reduce VAT on petrol and diesel and encourage commuters to buy euro VI fuel and save the livelihood of employees and owners of petrol pumps of Delhi and also save state's revenue loss," DPDA said in a statement.
There are about 400 petrol pumps in Delhi which also have linked compressed natural gas (CNG) stations and all of them are closed for nearly 24 hours."Due to difference in prices, there has been a sharp drop of 50-60 per cent in sale of diesel in Delhi and 25 per cent in petrol in this quarter", the DPDA president said.
On Sunday, DPDA president Nischal Singhania said, "In comparison to Delhi, fuel rates in bordering states like Uttar Pradesh and Haryana are cheaper.
Because of high price in Delhi and low prices in states like UP and Haryana, customers are deserting the petrol pumps in Delhi leading to huge drop in sales."