Petrol,diesel prices could come down in city limits

The Pune Petrol Dealers Association has requested cancellation of the 2 per cent octroi on petrol and diesel.

“The hike has hit citizens hard. The PMC should provide some respite to people by waiving octroi on petrol and diesel,” said MNS leader Ravindra Dhangekar at the civic general body meeting on Monday. Shiv Sena corporator Shyam Deshpande said they had raised the issue in the standing committee last week. BJP leader Mukta Tilak said octroi collection from petrol and diesel stood at Rs 40 crore. “The PMC should waive the octroi on petrol and diesel so that people can save Rs 40 crore,” she said. NCP corporators too urged the PMC to reduce the octroi on petrol and diesel to 1 per cent from the existing 2 per cent.

The dealers association has also requested the PMC not to collect octroi on the total value of the petrol which is inclusive of the Value Added Tax (VAT).

In a letter to PMC octroi dept,the association said it was collecting octroi on total value of the invoice of the product supplied to the petrol pumps which includes VAT on petrol and diesel.

The government is charging 25 per cent VAT on petrol and 23 per cent on diesel which has increased the total basic value. “Octroi is levied on the total value after the VAT addition and this has further increased the price. Customers are unnecessarily paying more when the PMC can charge less,’’ said association spokesperson Ali Daruwalla. PMC octroi chief Hemant Nikam said,“We are administrators and we cannot change rules till the government asks us to do so.”