Smuggling of diesel from UP causing huge loss to Bihar coffers, dealers

The problem is compounded by smuggling of diesel from the neighbouring state for illegal retail sale to farmers and vehicle owners in remote areas.

Rampant smuggling of diesel from Uttar Pradesh (UP) is causing a huge loss to Bihar exchequer and hardship to authorised pump owners in the districts neighbouring UP, said people in the know.

Petrol pumps in districts neighbouring UP have taken a hit due to the smuggling and illegal sale of Diesel. (Vipin Kumar/HT PHOTO)

Most of the companies in the state, involved in the construction of road, rail and other projects, are purchasing diesel from UP and bringing it illegally in unauthorized small tankers. This is causing the government loss of crores of rupees in Value Added Tax (VAT), they added.

The problem is compounded by smuggling of diesel from the neighbouring state for illegal retail sale to farmers and vehicle owners in remote areas.

What is even worse, unlicensed tankers being used for the smuggling are hazardous and can cause dangerous accidents. The tankers licensed by Petroleum and Explosive Safety Organization (PESO) are the only ones allowed to transport diesel.

A delegation of the Petroleum Dealers’ Association led by the association’s divisional president, Piyush Shukla, met the Bhabua district magistrate and superintendent of police on Tuesday, requesting for immediate and firm action to check the menace.

Association’s district organization in-charge Chandra Prakash Arya said that three petrol pumps near the UP border had already been closed and several others were running in huge losses due to the diesel smuggling. There are 38 petrol pumps in the district, 15 of those are on NH 2. They claim that from 80 lakh liters of diesel per month, the sale had come down to 32 lakh liters a month. Same was the situation in other districts bordering UP.

The body informed the administration that National Highway 2, Dharuli-Chand, Hata-Mahadaich, Adhaura-Khaliari, Sarki-UP, Ramgarh-Baraura and Devhalia-Kakrait roads were being used for smuggling.

Shukla said the situation worsened after 2016, when the Bihar government imposed excessive VAT and surcharge on fuel to compensate for the losses suffered due to the liquor ban. Presently, the price of diesel and petrol is cheaper by Rs 7/litre in UP.

District magistrate, Nawal Kishor Chaudhary said that a team of district supply officers and sub divisional officers has been formed for taking strict action against the smugglers and also for regular surveillance.