Maharashtra auto fuel pump operators threaten stir on new levy

Warn statewide agitation; dealers in border districts witness crash in diesel sale

Automobile fuel pump operators in Maharashtra are theatening a stir against the state government's decision to impose an additional Rs 2 per litre value added tax surcharge on petrol and diesel from Thursday.

The government has termed this a drought cess. The operators say it had led to a crash in diesel sales, especially in pumps on national highways and along the state borders.

The Federation of All Maharashtra Petrol Dealers Association, representing 4,700 fuel pump agencies, said at least 500 outlets might stop operating due to loss of business to neighbouring states. Monthly sale of petrol is around 275 kilolitres and 200 kl of diesel from these pumps.

Federation president Uday Lodh told Business Standard: "The state government has removed local body tax (LBT) on petrol and diesel in 25 municipal corporations. But, it has imposed this additional levy of Rs 2 a litre. From the information gathered from our members, in one day (Friday) the inter-state sale of diesel has fallen by a record 35 per cent. This will make fuel operators, especially in national highways and in the border districts, impossible to function. The Federation has convened a meeting on October 8 to decide the nature of agitation. If the government remains firm, we might go for a statewide indefinite strike."

Its Mumbai unit president, Ravi Shinde, said operators in this city and those catering to highway traffic and fleet consumers would suffer heavily. \"Fleet consumers in particular will prefer to fill diesel from states they travel to. Already, diesel is dearer by Rs 3-4 a litre, especially compared with Gujarat, Andhra Pradesh, Telangana and Karnataka,'' he said.

Finance Minister Sudhir Mungantiwar defended the government's decision, saying the tax rate on petrol was 24 per cent and on diesel, 21 per cent. These rates were far lower than in Andhra (39.56), Madhya Pradesh (32.3), Rajasthan (32.68), Karnataka (32.3) and Kerala (34.24).

Opposition parties, the Congress and Nationalist Congress Party, have rapped the government for the tax rise, alleging was to protect the interest of traders.