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Petrol pumps in 8 Rajasthan districts on indefinite strike to demand lower VAT
Petrol pumps in eight Rajasthan districts, Bikaner, Ganganagar, Hanumangarh, Churu, Pali, Barmer, Jalore and Jhunjhunu, remained closed on Monday against high price of petrol and diesel
JAIPUR: Nearly 1,500 petrol pumps in eight districts of Rajasthan close to the state’s borders with Haryana and Punjab on Monday went on an indefinite strike on Monday to demand that the state government reduce the 6 percentage point increase in value-added tax (VAT) on diesel during the Covid-19 pandemic starting March 2020.
The petrol pump dealers have also sought a ban on the sale of illegally sourced and smuggled diesel from neighbouring states, base oil or paraffin in form of biodiesel in the division, one-state-one-price for fuel, lower VAT rate on the lines of Punjab and Haryana, and reduction in the storage limit for farmers from 2,500 litres to 1,000 litres.
Because of the levies, petrol and diesel are sold in Sri Ganganagar, the state’s northernmost district, for ₹120 per litre and diesel at ₹108 per litre, said chairman, steering committee of Rajasthan Petroleum Dealer Association, Rajendra Singh Bhati.
“Our protest will continue till our demands are met,” he said.
Bhati said over 1,500 petrol pumps in eight districts, Bikaner, Ganganagar, Hanumangarh, Churu, Pali, Barmer, Jalore and Jhunjhunu, remained closed on Monday. Besides, some pumps in two districts, Nagaur and Jaisalmer, also participated in the strike.
He said these eight districts generate revenue of ₹32 crore per day for the state.
Bhati said petrol pump owners lost out due to the high taxes because of smuggling from Punjab and Haryana, where state taxes are much lower. “Several pumps in these eight districts had to shut because of drop in sales,” he claimed.
As a result of the levies and transportation charges, petrol and diesel in Churu on Monday were priced at ₹116.80 per litre and ₹107.88 per litre respectively, as compared to ₹108.45 per litre (petrol) and ₹98.36 per litre (diesel) in Punjab’s Bathinda, and ₹109.26 (petrol) and ₹98.05 (diesel) in Haryana’s Sirsa.
Bhati said the existing limit allowing people to store up to 2,500 litres of diesel for farming was being abused, and used to smuggle the fuel from neighbouring states.
