E-Paper
Punjab VAT hike blow to Mohali pump owners
The rate of diesel is ₹89.25 paise per litre on Sunday, while in Chandigarh diesel is being sold at ₹84.26 per litre with a difference of ₹ ₹4.99 paise; in Panchkula, diesel is being sold at ₹90.19 per litre
With the Punjab government on Sunday increasing Value-Added Tax (VAT) on fuel by 10%, resulting in a hike in the prices of petrol and diesel, Mohali filling station owners are fearing business losses.
The rate of diesel is ₹89.25 paise per litre on Sunday, while in Chandigarh diesel is being sold at ₹84.26 per litre with a difference of ₹ ₹4.99 paise. In Panchkula, diesel is being sold at ₹90.19 per litre.
Even, the rate of petrol in Mohali on Sunday was ₹98.95 per litre, while in Chandigarh it is ₹96.20 per litre, making it ₹2.75 costlier. In Panchkula, the rate is ₹97.34 per litre.
The petrol prices for retail customers have increased by 92 paise per litre, while diesel prices have risen by 88 paise per litre.
Petrol pump dealers have criticised the government’s decision, labelling it as poor economics.
They argued that it will lead to substantial revenue loss and impose an additional burden on the common man who is already struggling with the rising cost of essential commodities.
Ashwinder Singh Mongia, president of the Mohali District Petroleum Dealers Association, expressed concerns about the declining sales of petrol and diesel, attributing it to the disparity in VAT rates.
He warned that petroleum dealers, especially those with outlets in Mohali bordering Chandigarh, fear closure if the state government does not intervene on time.
“Due to the differences in fuel rates in both places, we have lost about 70% of our business. All those dealers in the Punjab area, whose pumps are located on the UT-Punjab border, are the worst sufferers. When they can bring parity in liquor rates then why can’t they bring uniformity in fuel rates.” “As fuel is available at cheaper rates just 2-3km from our petrol pumps, who would come to us,” Mongia added.
Ashok Sachdeva, the secretary of the Petroleum Dealers Association, criticised the decision to raise fuel prices, highlighting the “flawed economics” behind it.
He pointed out that VAT is charged per litre of fuel, so if the volume of fuel consumed decreases, the government’s profits will also decline.
Sachdeva stated that industrialists and farmers were already ordering fuel from Chandigarh to mitigate the impact, and further increase will eventually harm their businesses in the long run.
Saudagar Singh Ghudani of Bharti Kisan Union (Ekta Ugrahan) condemned the government for increasing the diesel price just before the paddy-sowing season.
He said Punjab, being an agrarian state, should have a cap on diesel prices, as they are already exceptionally high. Ghudani believed that further increases would burden farmers even more.
