Pump operators demand ‘increased compensation, reduced VAT on fuel’

Gurugram: Members of All Haryana Petroleum Dealers Association (AHPDA) on Saturday said that they will observe a “No Purchase Day” — will not buy oil from companies — on Tuesday (May 31) to protest against the central government and oil companies for failing to increase their commission in the last five years, despite an increase in fuel prices

Gurugram: Members of All Haryana Petroleum Dealers Association (AHPDA) on Saturday said that they will observe a “No Purchase Day” — will not buy oil from companies — on Tuesday (May 31) to protest against the central government and oil companies for failing to increase their commission in the last five years, despite an increase in fuel prices.

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The AHPDA members also urged the vehicle owners to stock petrol and diesel adequately within Monday (May 30), so that they would not suffer due to their protest. There are 4,000 petrol pumps across Haryana, and 162 out of these are in Gurugram, said the members, adding that the move comes following the reduction of excise duty on petrol and diesel by the Centre, said the members.

“We will ensure that the vehicle owners don’t suffer because of the protest, but it is necessary to give the government a clear message about the issue. Petrol and diesel prices have increased by over 150% in past five years, but the commission on the same remained uniform. We have to pay wages and operate petrol pumps... About 90% of the commission is being used in operating petrol pumps... and there is inflation as well... However, we are not getting any relief... This is a symbolic protest, and we will ensure that the consumers do not face any problem,” said MC Gupta, general secretary of AHPDA, during a press conference in Gurugram on Saturday.

The association further said that “there is a provision for the revision of their commission every six months, but to no avail”. “The reductions in excise duty in November 2021 and May 2022 have not helped the dealers. Every pump operator in the state has incurred losses up to ₹4 lakh to ₹5 lakh due to these cuts... as higher duty charge was paid on the existing stock,” said Gupta.

Members of the AHPDA have also urged the state government to reduce VAT on petrol and diesel so that the constant loss to the petrol pump operators can be compensated. “Due to low petrol and diesel prices in the neighbouring states, consumers buy those from there, and this has reduced the sale of petrol and diesel here. If the government reduces the VAT, it will not lose money as that will get covered in additional sales,” Gupta added.