Fuel pumps go on indefinite strike in Rajasthan against high VAT

The Rajasthan Petroleum Dealers' Association (RPDYA) s demanding the state reduce its tax on fuel to match that of its neighbouring states

Fuel pumps association in Rajasthan began an indefinite strike on Friday, demanding equal value added tax (VAT) rates on fuel, akin to the rates in Punjab.

 

Rajasthan has one of the highest VAT on petrol, at 31.04 per cent and diesel at 19.30 per cent, in the country. Comparatively, Haryana's VAT is 18.20 per cent on petrol and 16 per cent on diesel, while Punjab and Gujarat have the lowest VAT on fuel, at 13.77 per cent and 9.92 per cent, respectively.

 

Petrol pumps located near borders have especially been hit hard as vehicles opt to fill their tanks before entering the state.

 

 

The Rajasthan Petroleum Dealers' Association (RPDYA) had initially organised a two-day strike from September 13-14 from 10 am to 6 pm. Rajendra Singh Bhati, the state president of RPDA, had warned that if the state government did not comply, an indefinite strike would commence on September 15.

 

More than 6,700 fuel pumps across Rajasthan reportedly participated in the strike, with pump urging to align VAT rates on petrol and diesel with those in Punjab.

 

However, late on Thursday night, pump dealers decided to escalate the strike into an indefinite one.

 

It must be noted that oil company-operated pumps remain open for fuel dispensing.

 

In an official statement released on Friday, Bhati declared that, starting from 6 am, all petrol pumps in the state would neither make sales nor engage in buying goods from the depot.

 

The ongoing strike has undoubtedly led to inconvenience for the general public in Rajasthan, resulting in long queues and delays at petrol pumps, particularly in Jaipur.

 

According to a report by the Times of India, in response to the strike, Chief Minister Ashok Gehlot accused the Centre of levying additional charges. He added that it was up to the Centre to reduce the rates, indicating that the state government would not act against the current fuel tax.

 

This news comes ahead of the Rajasthan State Assembly elections in December 2023 or early 2024.

 

(With agency inputs)