Petrol pumps along with linked CNG dispensing units in Delhi will remain closed on Monday in a protest by the Delhi Petrol Dealers Association (DPDA) against the Delhi government’s refusal to reduce VAT on fuels.
About 400 petrol pumps and CNG units across the national capital will remain shut from 6 am on 22nd October 2018 and remain closed till 5 am on 23rd October 2018.
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“The central government had slashed the rate of petrol and diesel by Rs 2.50 per litre each on September 4. This was followed by reduction of VAT (value added tax) by various states including neighbouring Haryana and Uttar Pradesh, bringing relief to their residents. But, the Delhi government refused to reduce VAT on fuel both petrol and diesel resulting in fuel becoming more expensive than bordering Haryana and Uttar Pradesh.”, DPDA president Nischal Singhania said in statement.
In comparison to Delhi, fuel rates in bordering states like Uttar Pradesh and Haryana are cheaper, which is leading to customers deserting the petrol pumps in Delhi leading to huge drop in sales, as per Singhania.
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“Due to difference in prices, there has been a sharp drop of 50-60% in sale of diesel in Delhi and 25% in petrol in this quarter” the DPDA president said, adding that on Monday, all the 400 pumps of Delhi will neither purchase nor sell petrol, diesel and CNG.
DPDA’s statement urged the Delhi government to immediately reduce VAT on fuel and encourage commuters to buy euro VI fuel and save the livelihood of employees and owners of petrol pumps of Delhi as well as save state from suffering revenue loss.