Petrol dealers' body seeks redress for losses from Centre's excise duty move
- According to the AIPDA, the decision to cut central excise duty pushed petrol pumps into losses because they had procured the fuel at a higher duty than what they sold at.
Days after the Centre announced an excise duty cut on petrol and diesel, the All India Petroleum Dealers Association (AIPDA) has demanded that the government come up with a mechanism that does not cripple them financially.
A report by LiveMint said that while the duty cut provided a slight relief to commuters, it pushed petrol pumps into losses amounting to nearly ₹2,100 crore because dealers had procured the fuel at a higher duty than what they are now selling at.
Seeking relief, members of the AIPDA reached out to the Union minister of petroleum and natural gas, Hardeep Singh Puri, and sought reimbursement for the loss incurred. AIPDA head Ajay Bansal said the member also asked him to take up the matter with the ministry of finance.
The fuel dealers’ bdy also suggested that petroleum products be brought under the purview of GST. “The AIPDA also demanded inclusion of petroleum products in GST so that the rates of diesel and petrol can be reduced to ₹75-80 per litre to control inflation and benefit the economy," read a statement from the body, as reported by LiveMint.
Several state dealers have also raised objections against the Centre's decision and are planning to hold protests over the same.
Last week, Union finance minister Nirmala Sitharaman said the Centre had decided to slash central excise duty on petrol by ₹8 per litre and on diesel by ₹6 a litre.
As a result, petrol price in Delhi came down to ₹96.72 a litre and diesel to ₹89.62. States like Kerala, Maharashtra and Rajasthan also reduced VAT after the centre’s excise duty cut bringing down the fuel prices further in those states.