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Effective fuel price cut less than announced by Punjab govt, claims petrol dealers’ body

The Petrol Pump Dealers Association Punjab (PPDAP) added that it will result in lesser sales with fuel prices remaining higher compared to Himachal Pradesh, UT Chandigarh and Jammu and Kashmir.

By: Express News Service | Chandigarh |
Updated: November 9, 2021 5:32:32 am
The PPDAP said that “the net reduction in fuel prices was not Rs 5 decrease in per litre of diesel and Rs ten in petrol what Punjab government announced yesterday”.

Petroleum dealers in Punjab have flayed the quantum of reduction in Value Added Tax (VAT) on petrol and diesel announced by the state’s Congress government, claiming that it was less than what was announced. The Petrol Pump Dealers Association Punjab (PPDAP) added that it will result in lesser sales with fuel prices remaining higher compared to Himachal Pradesh, UT Chandigarh and Jammu and Kashmir.

The PPDAP said that “the net reduction in fuel prices was not Rs 5 decrease in per litre of diesel and Rs ten in petrol what Punjab government announced yesterday”.

According to PPDAP VAT advisory committee chairman and Mohali District Petroleum Dealers Association president Ashwinder Singh Mongia, the net decrease in price of diesel per litre in Mohali district worked out to be Rs 4.33 and of petrol Rs 9.05.

Mongia said, “While announcing the reduction in petrol and diesel prices, the government factored in basic and additional VAT, but the net reduction in fuel prices turned out to be lesser than announced as government also imposes cess, additional cess and infrastructure development fee on per litre of fuel.”

PPDAP president Paramjit Singh Doaba, who owns a filling station in Kapurthala, said in his area the net reduction in diesel price was Rs 4.21 per litre and in petrol price, it was Rs 8.86 litre.

“Rauli pa diti ki das rapaiye atte panj rapaiye ghataaya par asli jehra ghatya oh ath rapaiye chheyaasi paise atte chaar rapaiye ikki paise (The government made a lot of noise as it announced reduction in prices of petrol and diesel by Rs 10 and Rs 5 per litre, but in effect prices stand reduced at Rs 8.86 and Rs 4.21, respectively),” said Doaba, asking “what kind of government and officers are there who could not even calculate the exact reduction”.

Doaba also rued that the disparity in fuel prices puts Punjab at a disadvantage.

“We had demanded that prices of diesel and petrol, both should have been decreased by Rs 10 per litre each. This would have ensured a level playing field,” he said, adding that the announced reduction would have “serious repercussions on the petroleum trade in Punjab, industry, transporters and the farming community”. He said the decision would also lead to “reduction in VAT collections” due to “fall in sales of diesel in terms of litres of diesel sold”.

He also issued a statement, pointing out that “Punjab shares its vast borders with Himachal, Haryana, J&K, Chandigarh and there is free flow of traffic between Punjab and neighbouring states through state and national highways, link roads, village roads making it vulnerable to unscrupulous activities like smuggling in small oil tankers, sourcing of diesel requirements by industry from neighbouring states, easy approach to farmers for sourcing their bulk diesel requirements from across the border”.

Further, he said over phone that while farmers living along the border areas will be able to source the diesel from across the inter-state border, it would not be viable for farmers living in interior areas of Punjab. Similarly, he said that while big industries with huge requirement of fuel would get it from outside, it would not be viable for small and medium scale industries which comparatively had lesser requirements.

“We will have a meeting soon and decide association’s next course of action on the issue,” said Doaba.

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