Hopeful of reduction in VAT, Punjab petroleum dealers defer protest

Paramjeet Doaba, president, Punjab Petroleum Dealers Association, said if the VAT remains higher in Punjab, the movement shall resume after a meeting of the Punjab state executive body

Even as the Punjab government has already declared that it is considering reducing VAT on petrol and diesel, the Punjab Petroleum Dealers’ Association (PPDAP) executive body is putting on hold its agitation till the matter is decided by the Punjab cabinet.

The president of the Punjab Petroleum Dealers Association said they have decided to defer their protest till the matter is decided by the state cabinet. (HT File Photo/ Representational image)

Paramjeet Singh Doaba, president, Punjab Petroleum Dealers Association, said, “We are hopeful that VAT on petrol and diesel will be reduced to bring prices on par or less than the neighbouring states. However, if VAT remains higher in Punjab, the movement shall resume after a meeting of the Punjab state executive body.”

According to the association, petrol pump dealers are facing losses due to the higher VAT on petrol and diesel compared to the neighbouring states and Chandigarh. The non-revision of dealer margins from the last four years and state-owned oil marketing companies (OMCs) offloading their expenses onto dealers and locking supplies is hitting dealers badly.

In the absence of margin revision and high fuel prices, the dealers in the state had earlier decided to limit their work timings for a single shift only from 7 am to 5 pm from November 7 for 15 days to cut their expenses and cover up losses.

The Punjab government still hasn’t taken a call on VAT and petrol pump dealers in Mohali are facing losses with fuel in Chandigarh and Chandigarh being sold much cheaper.