Fuel stations threaten stir demading cut on VAT on diesel

Delhi petrol pump dealers threaten to go on agitation if the state government did not reduce VAT on diesel to bring rates at par with neighbouring states.

Delhi petrol pump dealers threatened on Saturday to go on agitation if the state government did not reduce VAT on diesel to bring rates at par with neighbouring states like Haryana.

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"We have lost 30 per cent of our sales to Haryana during the past 10 days fuel because there costs less," Delhi Petrol Dealers Association General Secretary Anil Bijlani told reporters in New Delhi.

Haryana has reduced VAT on diesel to 8.8 per cent from 12 per cent with effect from June 9. "This reduction of tax in Haryana has made diesel more expensive in Delhi," he said.

Delhi sells about 12 crore litres of diesel every month and if the state did not reduce VAT sales will drop to half.

Neighbouring Uttar Pradesh has also reduced VAT on petrol by Re 1 per litre and diesel by Rs 1.5 per litre. "Both the (Delhi) state as well as our dealers will suffer huge losses if the rate of VAT on diesel is not brought at par with the neighbouring states," he said, pointing that the UPA Chairperson Sonia Gandhi had also asked Congress-ruled states to reduce VAT on petroleum products to give some relief to the consumers.

"We will be left with no option but to agitate if the Delhi government does not reduce VAT on diesel from present 12 per cent to 8 per cent," Bijlani said. "We will wait for 7 days for the government to respond. We may even go on a strike."