400 petrol pumps shut over Delhi Government’s Refusal To reduce VAT

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A total of 400 petrol pumps along with linked Compressed Natural Gas (CNG) dispensing units in the National Capital, began a day-long strike on Monday in protest against Delhi government’s refusal to reduce VAT on fuels.

The Delhi Petrol Dealers Association (DPDA) said that the Delhi government’s inaction was hampering their business as Delhi has a higher VAT than neighbouring states of Haryana and Uttar Pradesh which attracts people to get fuel at the latter stations that had slashed their fuel prices.

“This has caused losses ranging between 20-30 per cent, as commuters prefer to get their vehicles filled at a fuel station in the neighbouring states of Haryana and Uttar Pradesh,” DGPA said.

The Central government on October 4 had 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.

Gujarat and Maharashtra were among the first states to announce reductions of Rs.2.50 per litre each. Chhattisgarh, Jharkhand, Tripura, Madhya Pradesh, Himachal Pradesh, Assam, Uttarakhand, Goa, Arunachal Pradesh, and Jammu and Kashmir later announced similar moves.

Uttar Pradesh and Haryana were among those which reduced their state taxes on fuel. However, Delhi government refused to reduce VAT on fuel.

Hence, petrol and diesel became cheaper in cities like Noida, Gurgaon and Ghaziabad in comparison to Delhi.